Oman's 80th block has finally found a development partner. The Ministry of Energy and Mines of Oman has recently officially signed an exploration and production sharing agreement with OQEP and the state-owned Türkiye Petroleum Company TPAO. The wholly-owned subsidiaries of the two companies each hold 50% of the equity, and the Oman entity acts as the operator.

The location of this area is crucial. Block 80 is located in the Gulf of Oman, with an area of approximately 5737 square kilometers, adjacent to the Strait of Hormuz and near the coast of Musandam Province. There are already Buha and Western Buha oil and gas fields in production within the block, and basic geological data is readily available. This is good news for the exploration team, there is no need to start from scratch.

Eight years, 90 million US dollars, divided into two steps

The exploration period is set at eight years, divided into two four-year stages. The first phase involves completing a 3D seismic survey of 500 square kilometers, drilling two exploration wells and conducting a one-year evaluation operation, with a minimum investment of 60 million US dollars. In the second phase, another well will be drilled based on the results of the first phase, with a commitment of at least 30 million US dollars. If commercial feasibility is confirmed during exploration, the production period can be extended for up to 30 years.

In addition to the exploration agreement, OQE and TPAO have also signed a third agreement with Oman's state-owned integrated natural gas company to specifically handle the sale of potential natural gas production in the future.

Opportunities by the Strait of Hormuz

The value of Block 80 is not limited to existing oil fields. MEMR clearly states that this land is located in a highly potential offshore basin, and the exploration accumulation in the surrounding areas also provides geological references. The Buha oilfield is still in production, indicating that there is still something underground that can be excavated. Keywords: Middle East news, oil exploration

For OQE, this is a move to expand its upstream territory. For TPAO, this is a rare window for it to acquire offshore oil and gas assets in the Middle East. The two companies use advanced seismic imaging and offshore drilling technology to evaluate resource potential. Whether new discoveries can be made depends on the exploration results over the next four years.Editor/Cheng Liting