Concession pact signed for Block 80 offshore oil exploration

By the Editorial Team · Thursday, June 25, 2026

Oman's Ministry of Energy and Minerals has signed a concession agreement with OQ Exploration and Production and the Turkish Petroleum Overseas Company to jointly develop offshore oil Block 80 in the Musandam Governorate. This partnership, involving a planned $90 million investment in phased exploration activities, aims to boost Oman’s hydrocarbon output and advance the nation’s strategic energy goals under Oman Vision 2040.

Oman's Ministry of Energy and Minerals has finalized a concession agreement for offshore oil exploration in Block 80, located in the Musandam Governorate. The accord was signed on June 24, 2026, by Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, representing the Omani government, alongside Mahmoud bin Salim al Hashmi, CEO of OQ Exploration and Production (OQEP) - Musandam Offshore, and Cagri Sirin, Head of International Projects for the Turkish Petroleum Overseas Company Limited (TPOC).

Block 80 covers approximately 5,737 square kilometers and includes producing fields such as Bukha and West Bukha, marking it as a strategically important asset within Oman’s oil and gas sector. Under the terms of the agreement, OQEP will operate the block with a 50% interest, while TPOC will hold the remaining 50%, signaling a partnership that aims to leverage international expertise to further develop the region’s hydrocarbon potential.

The exploration plan outlined in the concession spans two phases, each lasting four years. The initial phase involves conducting 3D seismic surveys covering 500 square kilometers along with drilling two exploration wells and one appraisal well. This phase carries a mandatory minimum investment of $60 million. Depending on the results obtained, the second phase will include an additional exploration or appraisal well, supported by a minimum investment of $30 million.

Eng Salim bin Nasser al Aufi stressed that the signing of the concession agreement represents a significant advancement in the development of Oman’s promising offshore energy resources. He highlighted the strategic maritime location of Block 80 and its promising geological outlook, bolstered by data and insights derived from adjacent offshore areas. The minister emphasized the commercial viability demonstrated by existing fields in Musandam, particularly Bukha and West Bukha, and expressed confidence that the agreement would contribute to the nation’s broader objectives under Oman Vision 2040.

The concession agreement aligns with Oman’s goal of enhancing the efficiency and innovation of its energy sector while maximizing hydrocarbon resource utilization to support economic growth. The partnership between OQEP and TPOC reflects ongoing confidence from specialized international entities in Oman’s investment climate within the oil and gas industry.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.