Turkish Petroleum is looking for partners and $ 3.2 billion for gas production in the Black Sea.
The Ursa State Oil and Gas Company will seek international partnerships and plans to attract investment to start work on the Black Sea’s largest natural gas field, which was discovered last year. This was stated to Bloomberg by sources familiar with the matter.
Turkish Petroleum (TPAO) has made preliminary contacts with several international energy companies, including the largest in the sector, to co-produce gas from the offshore field, say the agency’s sources, who do not want their names disclosed because the discussions are confidential. . Negotiations may not lead to any joint action and the Turkish company may have to continue on its own, they said. However, this can significantly slow down natural gas extraction processes.
According to a Bloomberg source, the investment needed to produce and supply gas is estimated at $ 3.2 billion. The Turkish company has already received 13.4 billion pounds ($ 1.9 billion) from the 2021 budget, but it is unclear how much of the amount will be earmarked for the Black Sea gas project. TPAO and the Turkish Ministry of Energy did not respond to questions from the agency’s e-mail.
The Sakarya field development project is about 175 km from the Turkish coast in Zonguldak. Its output could exceed eight times domestic consumption, and Ankara could stop relying on natural gas imports.
President Recep Tayyip Erdogan has set an ambitious deadline of 2023 for the start of proceedings when parliamentary elections are due in Turkey. At the moment, however, this seems unattainable. An additional complication for the Turkish company is the threat of sanctions over Ankara’s exploration activities in the eastern Mediterranean’s disputed waters. To protect itself from sanctions by the EU and possibly other countries, Turkey has recently returned its energy subsidiaries to its jurisdiction. They note that it uses state-owned vessels for exploration and production in offshore areas.
Delivery contracts The project is essential for Turkey, as long-term contracts for the supply of raw materials in the country, which account for a third of gas imports, expire this year. Most of the other agreements expire in 2025. This means that if the investment is made, the government will not need to renew all contracts and will be able to afford better conditions for the extension. Existing contracts, which deal with oil prices, usually contain take-or-pay clauses, as a result of which Turkey pays more for its imports than most European countries. TPAO, owned by the country’s sovereign wealth fund, has partnerships for oil and gas projects with companies, including BP and Azerbaijan’s State Oil in the Caspian Sea, Russia, Iraq, and Afghanistan. Before the discovery last year, Turkey searched for gas in six Black Sea exploration wells for the past 16 years with international companies’ help, including Royal Dutch Shell and Exxon Mobil.
State economic enterprises (SOE) will invest 43 billion 487 million 704 thousand TL this year. Turkey Petroleum Corporation (TPAO) discovered natural gas exploration in the Black Sea; with the help of drilling and field development, work appropriations allocated for 2021 will make the most SOE investment. TPAO will be the most investor SEE of 2021
According to the 2021 Investment Program, the investment allowance of SOEs, which was 24.3 billion dollars last year, was predicted to be 43.4 billion dollars, with an increase of 79 percent this year.
TPAO, with the investment target of 13.4 billion dollars, including the appropriation of 6.8 billion dollars for the Sakarya Natural Gas Field Development Project for exploration, drilling, and field development activities of natural gas discovered in the Black Sea, became the organization with the highest allowance allocated among SEEs. With this allocation, the organization surpassed TCDD, ranked first in previous years.
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