KUALA LUMPUR, Petroliam Nasional Bhd (Petronas), via its upstream subsidiary Petronas Carigali Sdn Bhd, has formalised a strategic collaboration with Oman-based OQ Exploration and Production New Ventures LLC (OQEP) to jointly pursue opportunities in oil and gas exploration and production across key markets in the Middle East and Southeast Asia.
The partnership was cemented with the signing of a memorandum of understanding (MOU) at OQEP’s headquarters in Muscat, Oman, marking a significant step in strengthening bilateral cooperation in the upstream energy sector. OQEP is a wholly owned subsidiary of OQ Exploration and Production SAOG, one of Oman’s leading national energy companies.
According to Petronas, the MOU sets out a framework for collaboration that will combine the multinational company’s international upstream expertise with OQEP’s deep regional knowledge and operational experience. The agreement is expected to unlock new growth opportunities, facilitate knowledge sharing, and accelerate value creation in both mature and emerging markets.
“Aligning our strengths with OQEP’s strategic direction allows us to pursue high-impact projects and enhance our global upstream portfolio,” said Mohd Redhani Abdul Rahman, Petronas’ vice president of international assets. “This partnership is a meaningful step forward in building a resilient and competitive upstream business, leveraging our complementary capabilities to explore and develop energy resources more efficiently.”
Petronas has maintained a presence in Oman since 2018 and currently holds participating interests in Block 61. The collaboration with OQEP is intended to build upon the company’s growing track record in the region, anchored on mutual trust, industry expertise, and shared goals of operational excellence.
The MOU also opens avenues for co-investment, technical cooperation, and joint project evaluation, allowing both parties to explore potential upstream ventures that may include conventional oil and gas fields as well as frontier energy resources.
“This partnership underscores Petronas’ commitment to expanding its global upstream footprint and diversifying its portfolio across strategic geographies,” the company added. “By leveraging OQEP’s in-depth local knowledge and regulatory insights, we aim to optimise exploration and production outcomes while delivering sustainable value to stakeholders in both countries.”
The agreement reflects the growing trend of cross-border collaborations in the energy sector, as national and international players seek synergies to navigate a dynamic market environment, mitigate operational risks, and respond to increasing global energy demand.
Petronas and OQEP plan to identify and evaluate specific upstream projects over the coming months, with the MOU providing a foundation for detailed project agreements, technical exchanges, and strategic planning to maximise the potential of jointly pursued ventures.
This collaboration is expected to further strengthen Oman-Malaysia energy ties and contribute to long-term regional energy security, while also supporting both companies’ ambitions to expand their presence in key upstream markets.
