OQEP, TPAO ink exclusive pact to evaluate Oman upstream blocks
OQ Exploration & Production New Ventures LLC, a subsidiary of OQ Exploration & Production (OQEP), has signed a tripartite Exclusivity Agreement with the Omani Ministry of Energy and Minerals and Türkiye's state-owned energy giant Turkish Petroleum Corporation (TPAO). The agreement grants the parties exclusive rights to evaluate specific oil and gas blocks in the Sultanate of Oman for a three-month period.
Publicly traded OQEP disclosed the agreement in a filing to the Muscat Stock Exchange (MSX) on Wednesday, July 16.
According to Turkish media, the agreement was signed during the official visit to Muscat by Türkiye's Minister of Energy and Natural Resources, Alparslan Bayraktar, earlier this week. During the visit, Bayraktar held bilateral talks with Eng Salim bin Nasser al Aufi, Oman's Minister of Energy and Minerals.
As part of the visit, a Memorandum of Understanding (MoU) was also signed between the two countries. The MoU commits both sides to exchange technical expertise, align regulatory frameworks, explore joint energy projects and examine financing mechanisms aimed at enhancing efficiency and accelerating the transition to cleaner fuels.
Potential areas of collaboration include crude oil exploration, LNG trade, renewable energy development, energy storage technologies and alternative fuels. A dedicated workstream will also explore opportunities in green hydrogen production, storage and transport — an emerging focus area under Oman's net-zero 2050 strategy.
Separately, OQEP and TPAO signed another agreement to explore broader opportunities for investment and cooperation in other energy-related domains.
TPAO, wholly owned by the Turkish government, is Türkiye's national oil company. While originally integrated across exploration, production, refining, marketing and transportation, it has since the 1980s focused primarily on exploration and production. In addition to its significant domestic footprint, TPAO is active internationally in countries such as Azerbaijan, Libya, Pakistan, Hungary, Somalia, Iraq and Russia. From deepwater production in the Black Sea to seismic exploration globally, TPAO plays a key role in Türkiye's push for energy independence and regional leadership in hydrocarbons.
OQEP — Oman's largest pure-play upstream operator and the upstream arm of majority state-owned OQ Group — has a portfolio of around 15 onshore and offshore assets. With a daily output averaging around 230,000 barrels of oil equivalent, OQEP accounts for roughly 14% of Oman's total hydrocarbon production.
In addition to its core operations, OQEP also holds a 20 per cent stake in Marsa LNG, a low-carbon marine LNG bunkering project under construction at SOHAR Port and Freezone, led by TotalEnergies.
Earlier this year, OQEP was designated by the Ministry of Energy and Minerals to support the joint marketing of up to 11 new concession blocks to be launched as part of multiple bid rounds in 2025. The effort is being undertaken in partnership with the Ministry and Toronto-based Scotiabank, a global leader in oil and gas M&A advisory, with deep finance and technical expertise in the energy sector.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Muscat Daily
6 hours ago
- Muscat Daily
New rules issued for annual increment of Omani workers in private sector
By OUR CORRESPONDENT Muscat – Omani workers in the private sector will now be entitled to a performance-based periodic increment every January, under new regulations issued by the Ministry of Labour. Ministerial Decision No 317/2025, published in the Official Gazette (Issue 1606), sets out the minimum allowance rates and conditions for disbursement. The regulation replaces Ministerial Decision No 541/2013 and comes into effect the day after publication. Under the new rules, an Omani worker must have completed at least six months of service at an establishment to qualify. The allowance will be determined based on performance appraisals, with minimum increments as follows: 5% of the basic wage for an 'Excellent' appraisal 4% for 'Very Good' 3% for 'Good' 2% for 'Acceptable' No allowance for a 'Weak' rating Workers have the right to appeal their appraisal results to the competent department at the Ministry of Labour. An administrative fine of RO50 shall be imposed on any employer who violates the provisions of the decision, and the fine shall be multiplied by the number of workers in whose regard the violation occurred.
Observer
7 hours ago
- Observer
IHG Hotels & Resorts announces first voco hotel in Oman
IHG Hotels & Resorts has announced the signing of a management agreement for voco Muscat Al Mouj, a 251-key beachfront hotel set to open in Q4 2025. Alongside Golden Group Holding, the deal marks the first signing of the voco brand in the Sultanate of Oman, further expanding IHG's premium portfolio across the Middle East. The new hotel will cater to both leisure and business travellers. Its prime location offers easy access to Muscat International Airport and proximity to the city's cultural landmarks, making it a strategic addition to Oman's evolving hospitality landscape. Launched in 2018, voco is IHG's fastest-growing premium brand, already making its mark with openings and signings across Europe, the Middle East, Africa, and Asia. Known for its bold identity and thoughtful touches, the brand blends the character of individual hotels with the benefits of a trusted global name, offering guests a reliably different experience. Upon opening, voco Muscat Al Mouj will join the brand's growing portfolio of more than 100 open hotels globally and a robust pipeline of more than 95 properties. Haitham Mattar, Managing Director, IHG Hotels & Resorts, India, Middle East & Africa, said: "We are delighted to bring the voco brand to Oman in partnership with Golden Group Holding. Al Mouj Muscat is one of the region's most exciting lifestyle destinations, and we believe voco's distinctive charm and premium hospitality offering makes it a perfect fit for the destination. This signing reflects our commitment to supporting Oman Vision 2040 by contributing to the country's tourism and economic diversification strategy." Sheikh Salem Al Ghazal, Chairman, Golden Group Holding, said, 'Partnering with IHG to introduce voco to Oman is a significant milestone in our journey to enhance Muscat's hospitality offering. voco's blend of informal charm and global quality perfectly complements the dynamic spirit of Al Mouj. We look forward to delivering a hotel that embodies excellence, reflects Omani hospitality, and attracts travellers from across the globe." When it opens later this year, voco Muscat Al Mouj will offer 251 designed rooms and suites, along with five distinct dining experiences, including an all-day dining venue, specialty restaurant, and lobby lounge. The hotel will feature three meeting rooms, a spa, swimming pool, fitness centre, business centre, ample parking, and a barber shop – providing guests with a well-rounded premium stay experience. IHG currently operates 9 hotels across five brands in Oman, including: Six Senses, InterContinental, Crowne Plaza, Hotel Indigo, and Holiday Inn, with 3 hotels in the development pipeline set to open within the next three to five years.
Muscat Daily
a day ago
- Muscat Daily
Manufacturing, FDI and exports drive Oman's industrial momentum
Muscat – The industrial sector recorded a 27.5% increase in foreign direct investment during the first quarter of 2025, taking total FDI in the sector to RO2.749bn, according to figures released by Ministry of Commerce, Industry and Investment Promotion (MoCIIP). The manufacturing sector also posted steady gains, supported by higher demand across regional and international markets. Non-oil exports grew 7.2% between January and May 2025 to RO2.7bn. The United Arab Emirates remained the top importer of Omani goods with RO485mn, up 22.9%, followed by Saudi Arabia at RO451mn, up 34.9%, and India with RO280mn, up 38.9%. H E Dr Saleh bin Saeed Masan, Undersecretary for Commerce and Industry, said the figures reflect the impact of policies to build a resilient and competitive industrial base, in line with Vision 2040 and Industrial Strategy 2040. He highlighted the role of incentive plans and efforts to improve services in industrial zones. Khalid bin Salim al Qassabi, Director General of Industry, noted that Omani factories managed to expand production despite global market volatility and supply chain pressures. He attributed this to public-private sector collaboration and reduced operational costs, which led to higher project activity and improved Omanisation rates in industrial zones. MoCIIP continues to support initiatives focused on local value chains and broadening the national production base. Khalid bin Salim al Qassabi, Director General of Industry Jassim bin Saif al Jadidi, Technical Director at the Undersecretary's Office, said investor confidence remains strong due to improvements in the business environment, updated regulatory frameworks and enhanced incentives. These include targeted industrial financing, logistics upgrades, technology localisation and international partnerships. The petrochemical and electrical conductors sectors led the growth in manufacturing. Iron and aluminium industries also reported consistent gains, while cement companies began to recover from earlier losses. Tiles and ceramic production showed signs of revival, though glass manufacturers continued to face operational issues. Jassim bin Saif al Jadidi, Technical Director at the Undersecretary's Office Food processing firms – including milling and beverage producers – posted higher profits, driven by operational efficiency and increased demand across local and regional markets. Investments were concentrated in sectors identified as strategic – renewable energy technologies aligned with Oman's green economy goals; mineral production and exports; and food and medical industries supporting national security.
