By: AGBI

Oman has signed an offshore concession agreement with a joint venture between OQ Exploration and Production (OQEP) and Turkish Petroleum Overseas Company Limited, which will invest at least $90 million to increase the sultanate’s hydrocarbon resources.

OQEP will operate Block 80, located in Musandam governorate, with a 50 percent stake, while Turkish Petroleum holds the remaining 50 percent, the state-owned Oman News Agency reported.

The block spans 5,737 square kilometres and includes the oil- and gas-producing Bukha and West Bukha fields. The first phase of the exploration programme will extend for four years and include conducting 3D seismic surveys over 500 sq km and drilling two exploration wells and one appraisal well, at an estimated cost of $60 million.

The second phase, spanning another four years, includes drilling an additional exploration or appraisal well based on the results of the first phase, with estimated investments of $30 million.

The finance ministry reported in May a first-quarter climb in revenue to nearly OMR3 billion ($8 billion) due to gas income rising annually by 36 percent and oil income by 5 percent.

Oman produces an average of a million barrels of crude oil per day. It sold its oil at an average price of $64 per barrel in the first quarter of this year, up from $62 in the same quarter of 2025, ministry data showed.