Exclusive Pact Between OQEP and TPAO: Key Implications for Investors in Oman’s Upstream Oil Sector
MUSCAT, JULY 16 – OQ Exploration & Production New Ventures LLC, a subsidiary of OQ Exploration & Production (OQEP), has entered into a tripartite Exclusivity Agreement with the Omani Ministry of Energy and Minerals and Turkish Petroleum Corporation (TPAO), Turkey’s state-owned energy company. This agreement grants the involved parties exclusive rights to assess certain oil and gas blocks in Oman for a duration of three months.
OQEP announced the agreement in a filing to the Muscat Stock Exchange (MSX) on Wednesday, July 16.
According to reports from Turkish media outlets, the agreement was finalized during the recent visit of Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar, to Muscat. During this visit, Bayraktar engaged in discussions with Eng. Salim bin Nasser al Aufi, Oman’s Minister of Energy and Minerals.
In addition to the agreement, a Memorandum of Understanding (MoU) was signed between the two nations. This MoU commits both parties to share technical expertise, align regulatory frameworks, explore collaborative energy projects, and investigate financing options that aim to enhance efficiency and facilitate the shift towards cleaner energy sources.
Possible collaboration areas include crude oil exploration, liquefied natural gas (LNG) trade, the development of renewable energy, energy storage technologies, and alternative fuels. A specific workstream will also focus on opportunities related to green hydrogen production, storage, and transport, aligning with Oman’s net-zero emissions strategy for 2050.
Furthermore, OQEP and TPAO have signed an additional agreement to pursue broader investment and cooperation opportunities in various energy sectors.
TPAO, fully owned by the Turkish government, serves as Türkiye’s national oil company. Initially involved in exploration, production, refining, marketing, and transportation, TPAO has shifted its focus primarily towards exploration and production since the 1980s. The company is active both domestically and internationally, engaging in operations across several countries including Azerbaijan, Libya, Pakistan, Hungary, Somalia, Iraq, and Russia. TPAO plays a significant role in Türkiye’s ambition for energy independence and leadership in the hydrocarbons sector.
OQEP, Oman’s largest dedicated upstream operator and the upstream division of the majority state-owned OQ Group, manages a portfolio of approximately 15 onshore and offshore assets. With an average daily output of around 230,000 barrels of oil equivalent, OQEP represents approximately 14% of Oman’s overall hydrocarbon production.
In addition to its primary operations, OQEP holds a 20% stake in Marsa LNG, a low-carbon marine LNG bunkering project currently under development at SOHAR Port and Freezone, led by TotalEnergies.
Earlier this year, the Ministry of Energy and Minerals designated OQEP to assist in the joint marketing of up to 11 new concession blocks set to be launched during multiple bid rounds in 2025. This initiative is undertaken in collaboration with the Ministry and Scotiabank, a Toronto-based financial institution recognized for its expertise in oil and gas mergers and acquisitions.
Special Analysis by Omanet | Navigate Oman’s Market
The recent Exclusivity Agreement between OQEP and Turkish Petroleum Corporation represents a significant strategic shift for Oman’s energy sector, opening avenues for collaborative ventures in oil, gas, and renewable energy. This partnership not only enhances Oman’s capacity for technological advancement and energy diversification, but also boosts its attractiveness to foreign investment, creating opportunities for businesses to tap into emerging markets like green hydrogen. Smart investors and entrepreneurs should closely monitor regulatory developments and seek strategic alliances to fully capitalize on the potential growth in cleaner fuel technologies.
English 
Persian 
Arabic