en.Wedoany.com Reported - Oman's Ministry of Energy and Minerals has signed an Exploration and Production Sharing Agreement (EPSA) for Block 80 offshore with OQ Exploration and Production (OQEP) Musandam Offshore Company and Turkish Petroleum Overseas Company (TPOC). The block, located in the Musandam Governorate, covers an area of approximately 5,737 square kilometers and includes the producing Bukha and West Bukha fields.
This new concession agreement is part of the Omani government's initiatives to optimize hydrocarbon resource development and enhance energy utilization efficiency, aiming to drive economic growth and support the realization of Oman Vision 2040 goals. The agreement was signed by Minister of Energy and Minerals Salim bin Nasser Al Aufi, OQEP Musandam Offshore CEO Mahmoud Al Hashimi, and TPOC International Projects Director Cagri Sirin.
Under the terms of the agreement, OQEP will operate the block and hold a 50% participating interest, while TPOC holds the remaining 50%. The exploration plan will be implemented in two phases: Phase One lasts four years, including the acquisition of 3D seismic data over a 500-square-kilometer area, drilling two exploration wells and one appraisal well, with mandatory investment estimated at no less than $60 million; Phase Two, also lasting four years, will involve drilling an additional exploration or appraisal well based on Phase One results, with mandatory investment estimated at no less than $30 million.
Minister Al Aufi stated that the signing of the Block 80 concession agreement marks a new step for Oman in developing promising offshore areas, reflecting the growing confidence of international specialized exploration and production companies in the investment environment of the oil and gas industry. He noted that the block is located in a strategic maritime area with significant geological potential, benefiting from extensive data and expertise accumulated from adjacent offshore concession blocks, particularly the Bukha and West Bukha fields, which host commercially recoverable oil and gas fields in the Musandam Governorate. These factors enhance the prospects for new discoveries, which could support the growth of the country's hydrocarbon reserves and contribute to the long-term sustainability of oil and gas production. The ministry is also focused on deploying advanced technologies, including state-of-the-art seismic exploration and offshore drilling techniques, to improve operational efficiency and increase the likelihood of success in offshore areas.
OQEP Musandam Offshore CEO Mahmoud Al Hashimi stated that the signing of the Block 80 EPSA underscores the company's commitment to leveraging its expertise to seize new growth opportunities and strengthen its contribution to Oman's exploration and production sector. The inclusion of Block 80 offshore in OQEP's portfolio makes it the fifth concession block operated by the company in partnership with international operators, showcasing its operational capabilities and growing role in the development of the Sudan energy sector.
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