Awards for 4 Oman Upstream Blocks by Early 2026: Key Opportunities and Impacts for Investors and Business Owners
MUSCAT: The Ministry of Energy and Minerals of Oman is currently evaluating bids for four oil and gas blocks offered under the 2024–2025 licensing rounds. These blocks, located both onshore and offshore, are expected to see investment awards for development by early next year at the latest, according to officials involved in their marketing.
The blocks include three licenses—36, 43A, and 66—situated along Oman’s western border with neighboring countries, and a fourth block, Block 18, a large offshore concession in the southern Sea of Oman.
OQ Exploration & Production (OQEP), the majority state-owned upstream subsidiary of OQ Group, has been appointed by the Ministry to assist in marketing these licenses alongside several others. Scotiabank, a leading Canadian multinational bank specializing in international banking and capital markets, is supporting this effort.
Dr. Anwar al Kharusi, Chief Executive Commercial at OQEP, recently updated stock market participants on the company’s role in promoting the border concessions as part of an initiative named Project Sun. He stated, “We have been working closely with the government on Project Sun, which covers Oman’s border blocks 36, 43A, and 66. We have received offers from selected potential operators and partners. Currently, the government, OQEP, and Scotiabank are assessing these proposals.”
Regarding offshore Block 18, Dr. al Kharusi added, “We have also received an offer for this block, which is under review. We anticipate that all four blocks will attract investment by late 2025 or early 2026.”
Block 36 is the largest border license, spanning 18,557 km² across the Rub Al Khali desert in southwestern Oman. Its exploration history is limited, with only basic 2D seismic surveys conducted and a single well (Hayah-1) drilled, which revealed minor gas indications.
Block 66, covering 4,898 km² on the eastern flank of the Rub Al Khali basin, offers promising opportunities for exploration-oriented companies due to geology similar to producing fields in Saudi Arabia. Block 43A, located in Buraimi Governorate and covering 6,920 km², holds potential conventional oil prospects, benefiting from proximity to producing fields in Buraimi.
Block 18, an extensive 21,140 km² offshore area in the southern Sea of Oman, is offered under a new investment framework in which OQEP may cover 10% of exploration costs, potentially increasing to 30% if the block advances to commercial development.
These four blocks are part of 11 new oil and gas licenses that OQEP, in partnership with Scotiabank, is actively marketing.
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The ongoing evaluation of bids for four strategic oil and gas blocks, including significant border and offshore areas, signals major upstream investment opportunities in Oman’s energy sector by late 2025 or early 2026. For businesses and investors, this means potential access to high-potential frontier areas with underexplored resources, but also calls for careful risk assessment given the early exploration stages. Smart investors should consider partnering with OQEP and leveraging collaborative initiatives like Project Sun to capitalize on emerging exploration prospects while navigating geopolitical and technical uncertainties.
