Genel Energy, which operates oil exploration and production in Iraq, Morocco, and Somaliland, has selected Oman as its new target country. The Turkish company signed an exploration and production-sharing agreement for Block 54 in the Sultanate of Oman. It also formed a partnership with OQ Exploration & Production SAOG, a subsidiary of the state-owned Oman Investment Authority.
Over the next three years, Genel Energy and its Omani partner plan to evaluate existing wells, conduct drilling, and acquire 3D seismic data in this underexplored region. An initial budget of $25 million has been allocated for these operations. Genel Energy was founded in 2002 by Mehmet Emin Karamehmet, the owner of Çukurova Holding, and Mehmet Sepil.
Rothschild Family Member Became a Partner in Genel Energy
Genel Energy, which extracts oil in Iraq’s Taq Taq, Sarta, Qara Dagh, Miran, and Bina Bawi regions, made global headlines when former BP CEO Tony Hayward took over the company. In 2011, this move attracted a globally renowned partner—Nathaniel Philip Rothschild’s Vallares plc joined Genel Energy.
The partnership between Karamehmet and Rothschild made a significant impact in the energy sector. However, unexpected shareholding changes followed. Bilgin Energy, a key player in Türkiye’s energy market, gradually increased its stake, including acquiring shares from Mehmet Sepil. Bilgin Energy became the majority shareholder with a 24% stake, while Dubai-based Daax Corp’s share rose to 17.5%. Meanwhile, Rothschild’s stake declined to approximately 8%.
Partnership with Oman’s State-Owned Company
After expanding into the African market through operations in Morocco and Somaliland, Genel Energy aimed to increase its presence in new countries. According to a report by journalist Kerim Ülker in Dünya newspaper, the Turkish company has signed an agreement to operate in the Sultanate of Oman.
Under this deal, Genel Energy secured an exploration and production-sharing agreement for Block 54 in Oman. The partnership with OQ Exploration & Production SAOG, a subsidiary of the state-owned Oman Investment Authority, gives the Omani company a 60% stake, while Genel Energy holds a 40% share. The company’s operations will be in the South Oman Salt Basin, known as the Karawan Concession.
$25 Million Budget Allocated for Initial Operations
Located approximately 600 kilometers south of Muscat, Block 54 covers an area of 5,632 square kilometers. Since the region is still largely unexplored, Genel Energy and its Omani partner will assess existing wells, conduct drilling, and obtain 3D seismic data over the next three years. An initial budget of $25 million has been set for these efforts.
Genel Energy’s CEO, Paul Weir, commented:
“We have identified Oman as a preferred location for geographical diversification due to its stable regulatory environment and the significant steps it has taken in recent years to prepare its oil and gas sector for an exciting future. Therefore, this is the ideal country for Genel to begin its strategic diversification, expand its portfolio, and invest capital.”
Bilgin Energy’s Legacy of Pioneering in the Energy Sector
Bilgin Group has been active in the energy sector since 1994, with power plants totaling 1,737 megawatts of installed capacity. The company is known for several firsts in Türkiye’s energy market.
In 2003, Bilgin Energy commissioned Hacılar Hydroelectric Power Plant (HES) in Malatya, the first licensed hydroelectric plant built by the private sector. In 2006, it launched Bandırma Wind Power Plant (RES) with 30 megawatts of capacity, making it the first privately built licensed wind energy plant in Türkiye.
Source: Patronlar Dünyası/ Prepared by: İlayda Gök