By: OrePulse

Oman's Ministry of Energy and Minerals has signed a joint study agreement with Malaysia's national oil company Petronas and Oman's OQ Exploration & Production (OQEP) to assess the hydrocarbon potential of two offshore blocks near the Qurayyat coast.

The agreement, signed with Petronas subsidiary PC Oman Ventures Ltd and OQEP, covers Block 83, spanning 10,875 square kilometers, and Block 84, spanning 14,147 square kilometers, in the Sea of Oman. Under the deal, the companies will conduct geological and geophysical studies to evaluate the blocks' hydrocarbon potential and commercial viability. The study phase does not grant a concession over the acreage, though the ministry said the findings could pave the way for a future concession agreement and additional offshore exploration and development opportunities.

The agreement extends a partnership between Oman and the two companies that began in February 2026, when Oman awarded Petronas and OQEP an exploration and production-sharing contract for the adjoining Block 18, a 21,140-square-kilometer license area in the North Sohar Basin. PC Oman Ventures holds a 70% stake in Block 18, while Batinah Offshore LLC, an OQEP subsidiary, holds the remaining 30%. Combined with Blocks 83 and 84, the three license areas now form a contiguous acreage of about 46,162 square kilometers.

Block 18 has a history of unsuccessful exploration. Previous operators drilled three exploratory wells there that identified several geological plays but no discovery judged commercially viable, and India's Reliance Industries exited the block in 2011 following an unsuccessful drilling campaign.

The Ministry of Energy and Minerals' undersecretary, Mohsin al Hadhrami, attended the signing, along with Budi Nasron, country chairman of PC Oman Ventures, and Dr. Anwar al Kharusi, OQEP's chief executive for commercial affairs.

Nasron described the new agreement as "another significant step in our growing partnership with Oman."

OQEP, Oman's national exploration and production company, has expanded joint ventures with international partners across the sultanate's upstream oil and gas sector in recent years. Petronas, for its part, has pursued a series of international exploration agreements as it works to broaden its upstream portfolio beyond Southeast Asia.