Petroliam Nasional Bhd – PETRONAS has confirmed that its unit has gone ahead and inked a concession agreement with Oman government and OQ Exploration and Production Batinah Offshore LLC – OQEP to be its partner when it comes to exploration of oil and gas – O&G in Block 18 located in the Sea of Oman.
Apparently, this large offshore exploration area spans 21,000 sq km, is located in Northeast Oman, and provides quite a prominent exploration potential throughout the diverse geological settings, right from shallow to ultra-deep water, confirmed PETRONAS in a statement.
The concession agreement with Oman government involves the wholly owned unit of PETRONAS, PC Oman Ventures Ltd, and is built on the memorandum of understanding – MOU of the national oil company with OQEP in October.
According to PETRONAS, it marks a significant landmark when it comes to strengthening the strategic partnership between both companies and also reinforcing the long-term presence of PETRONAS in the Sultanate of Oman.
The statement by the company further added that the partnership supports the aspiration of PETRONAS to upgrade its competitive upstream portfolio through aligning its offshore exploration capacity with the regional expertise of OQEP, thereby laying the base for a venture that’s mutually beneficial.
It is well to be noted that Block 18 is one of the largest offshore concession blocks located in Oman and apparently was part of the concession blocks launched in 2024 by the state, which was a new approach to investment across the O&G sector and included the execution of a contractual system that is based on concession fees, in addition to allowance for the integrated gas exploitation projects.
PETRONAS vice president of international assets Mohd Redhani Abdul Rahman said, “Building on our technical strengths and successes, PETRONAS continues to expand its exploration activities into new frontiers.”
He further added, “Through our innovative exploration approaches and OQEP’s basin expertise, we aim to jointly unlock the potential of Block 18, contributing to Oman’s long-term energy security.”
According to him, “The addition of Block 18 aligns with our commitment to disciplined portfolio expansion, providing strategic optionality across our international portfolio.”
Interestingly, this latest announcement goes on to add to a series of major discoveries that have been achieved by PETRONAS last year, including the unlocking of hydrocarbon potential in Lebah Emas of Malaysia and the delivery of discoveries in Suriname Block 52.
The statement rolled out by PETRONAS says that being a global energy and solutions partner, PETRONAS stands committed to looking out for global opportunities and at the same time seeks to deepen its collaboration with its strategic partners.
