Oman Signs Concession Agreement for Offshore Block (18)

Muscat, 12 Feb 2026 (ONA) — The Ministry of Energy and
Minerals, on behalf of the Government of the Sultanate of Oman, has signed a
concession agreement for Offshore Block (18), as part of its ongoing efforts to
enhance exploration and production activities and expand the hydrocarbon
resource base in the Sultanate of Oman.

The agreement was signed on behalf of the Government of Oman by Eng.
Salim Nasser Al Aufi, Minister of Energy and Minerals. It was signed on behalf
of OQ Exploration and Production by Mahmoud Abdullah Al Hashmi, Acting CEO of
OQ Exploration and Production. On behalf of PC Oman Ventures Limited, a subsidiary
of Malaysia’s PETRONAS, the agreement was signed by Muhammad Redhani Abdul
Rahman, Vice President of International Assets at PETRONAS, in its capacity as
the operator of the concession area.

Under the terms of the agreement, PETRONAS will assume
operatorship with a 70% participating interest, while OQ Exploration and
Production will hold the remaining 30% stake in the concession rights. The
agreement includes an initial exploration period of four years, which may be
extended, with the possibility of declaring commerciality and granting a
production concession for a period of up to thirty years.

Offshore Block (18) is located in the Sea of Oman and covers an
area exceeding 21,000 square kilometers. It is considered one of the offshore
areas with diverse geological potential, despite the technical challenges
associated with exploration and drilling in deep waters, as no confirmed
discoveries have previously been made in the block.

Eng. Al Aufi affirmed that exploration activities constitute a
fundamental pillar in the optimal utilization of Oman’s natural resources. He
noted that expanding exploration programs aims to increase reserves and support
production levels, thereby directly contributing to sustainable development at
both the economic and social levels, and further strengthening the oil and gas
sector’s role in supporting the national economy.

He added that the agreement reflects the attractiveness of
Oman’s new investment incentive framework and its ability to attract leading
international companies, such as PETRONAS, to invest in offshore areas. He
emphasized that strategic partnerships between national companies and
international expertise play a vital role in transferring advanced technologies
and developing Omani talent in this key sector. The agreement is also expected
to mark the beginning of a broader partnership with PETRONAS in the Sultanate
of Oman.

He further stated that awarding the concession for Block (18)
represents a strategic step aligned with the objectives of Oman Vision 2040,
which seeks to ensure the sustainability of the energy sector and maximize the
added value of natural resources. He expressed his hope that the drilling
operations and seismic surveys to be carried out in the area will lead to the
discovery of new hydrocarbon potential, thereby enhancing national reserves and
strengthening the Sultanate of Oman’s position on the global energy map.

He also noted that the investing companies will implement a
comprehensive work program that includes conducting technical studies, with the
possibility of adding geophysical surveys in deepwater areas, as well as
drilling exploratory wells to fully assess the concession’s potential. He
wished the concession partners success in executing exploration activities in
Block (18) and in continuing the achievements realized in several offshore concession
areas in recent years.

For his part, Dr. Anwar Sulaiman Al Kharousi, Chief Commercial
Officer of OQ Exploration and Production, stated that the signing of the
concession agreement for Block (18) represents a significant addition to the
company’s offshore portfolio and strengthens its presence in exploration and
production activities. He affirmed that the partnership with PETRONAS builds on
the strategic cooperation between the two parties and supports the transfer of
expertise and technical knowledge exchange.

He further explained that OQ Exploration and Production is the
largest specialized exploration and production company in the Sultanate of
Oman, with an average daily production of approximately 224,000 barrels of oil
equivalent. The company continues to play a key role in supporting the
sustainability of the sector and maximizing the added value of national
resources.

On his turn, Muhammad Redhani Abdul Rahman, Vice President of
International Assets at PETRONAS, affirmed that the signing of the concession
agreement for Block (18) reflects the company’s commitment to expanding its
exploration portfolio in promising areas. He noted that the agreement builds on
the Memorandum of Understanding signed with OQ Exploration and Production
during the third quarter of 2025.

He added that PETRONAS will leverage its advanced offshore
exploration expertise and modern deepwater technologies, in collaboration with
its partners, to assess the hydrocarbon potential of the block, support
long-term energy security, and further strengthen its investment presence in
the Sultanate of Oman.

The investing companies are expected to implement a
comprehensive work program that includes conducting geophysical surveys and
technical studies, in addition to drilling exploratory wells to assess the
hydrocarbon potential of the area, thereby contributing to strengthening the
Sultanate of Oman’s position on the regional and global energy map.

— Ends/AH