Reliance Industries said on Saturday that the deal is for exploring oil in block-18 off the Batinah coast in the Gulf of Oman, spreading across 18,000sq km (6,8950sq miles).
"Reliance will be the operator of the block with 100% working interest," the company said in a statement.
With a presence in Oman and with its other overseas projects, the company is now active right across the petroleum value chain, from upstream to refining to retailing, it said.
The group also has a 25% stake in an exploration block in Yemen which has discovered oil.
"Oman, Yemen and other Middle East countries have multifaceted strategic advantages for Indian oil companies with strong and friendly diplomatic ties, existing commercial interests and significant Indian diaspora," Reliance said.
India is a major oil importing country and buys nearly 70% of its annual oil requirement from the global market.