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ENERGY LAW
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stock corporations, including publicly traded companies, and to private
law legal entities having the quality of a stock corporation in accordance
with foreign legislation. Said legal entities could be granted a license by
the Council of Ministers where it was deemed to be in accordance with the
national interests. In other words, private companies were able to obtain
a license with a decision of the Council of Ministers, differently from
TPAO. On the other hand, the Turkish Petroleum Law does not contain
such a provision related to the approval of the Council of Ministers.
Pursuant to Article 18 of the Turkish Petroleum Law, individuals who
claim rights as per the relevant law are under obligation to provide an
address in Turkey. An investigation permit, exploration license or operating
license shall not be granted to those who do not provide an address.
Pursuant to Article 19 of the Turkish Petroleum Law, the petroleum
right holder is obligated to provide, to the General Directorate of
Petroleum Affairs, all records, accounts, information, documents and
samples related to the petroleum transaction.
Exploration License
Pursuant to Article 6/5 of the Turkish Petroleum Law, the term of the
exploration license is five years on land and eight years in seas. The license
period may be extended for two years and for up to three years in seas,
with the condition that the license holder submit the work and investment
program which includes at least the performance of one drilling, as well
as providing the corresponding two percent collateral. Additionally,
the term of the exploration license of a petroleum right holder who has
fulfilled their drilling program within the first extension period may be
extended for up to two years on land and for up to three years in seas with
the condition that they submit a new drilling and investment program,
and provide the corresponding two percent collateral.
The period of the exploration license may not be more than nine years
in onshore regions and fourteen years in intra-territorial waters, including
the extensions made after the first effective date. However, an additional
period of up to two years can be granted so that commercial evaluations
can be made regarding a petroleum discovery made in the explored areas
upon the expiry of the term of the exploration license.