Offshore Exploration Concession Signed for Oman Block 18

PETRONAS, through its wholly owned subsidiary PC Oman Ventures Ltd (PCOVL), has signed a Concession Agreement with the Government of the Sultanate of Oman and OQ Exploration and Production Batinah Offshore LLC (OQEP) for oil and gas exploration in Block 18. The agreement grants PCOVL operatorship of the offshore block in partnership with OQEP.

Offshore Acreage and Geological Scope
Block 18 is located offshore in Northeast Oman and covers an area exceeding 21,000 km². The concession spans a range of geological environments, from shallow water to ultra-deepwater settings, and is classified as a frontier exploration area.

Frontier offshore blocks typically involve limited prior drilling data and require advanced seismic acquisition, basin modeling, and subsurface evaluation techniques to assess hydrocarbon potential. The large areal extent and varied bathymetry of Block 18 indicate a technically complex exploration program, likely involving phased seismic campaigns and exploratory drilling to delineate prospectivity.

Operatorship and Strategic Alignment
With the signing of the Concession Agreement, PCOVL assumes operatorship of Block 18, overseeing technical evaluation, exploration planning, and operational execution. OQEP will participate as a partner, contributing regional basin knowledge and offshore operating experience.

The agreement builds on a Memorandum of Understanding signed between PETRONAS and OQEP in October 2025. The collaboration reflects a structured approach to portfolio expansion, combining international offshore exploration capabilities with local geological expertise.

PCOVL has been active in Oman since 2018 and currently holds a participating interest in Block 61. The addition of Block 18 expands PETRONAS’ upstream footprint in the Sultanate and strengthens its offshore exploration portfolio in the Middle East.

Upstream Portfolio Development and Energy Security
The Block 18 concession supports PETRONAS’ strategy of disciplined international portfolio growth, focusing on technically complex exploration opportunities with long-term resource potential. Offshore frontier developments can provide strategic optionality by diversifying reserves and production profiles across different basins.

For Oman, the exploration of large offshore areas contributes to national energy security objectives by identifying new hydrocarbon resources to support domestic supply and potential export capacity.

The partnership between PCOVL and OQEP integrates offshore exploration technology with regional geological understanding, positioning the consortium to evaluate and potentially unlock hydrocarbon prospects within one of Oman’s largest offshore concession areas.