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NEWSLETTER 2013
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Under the PetroleumLawNo. 6326, the termof the exploration license
was four years. In the event the exploration activities were continued
in accordance with the relevant law and in good faith, the exploration
licenses in the region could be extended up to two years. In the event
that the activities of the explorer gave rise to the discovery of petroleum,
and under the condition that an extension request has been made with an
appropriate program, the Council of Ministers could extend the period for
up to two years in exchange of a collateral. In any case, the exploration
license period could not be more than eight years from the first date of
entry into force. These periods could have been extended by fifty percent
for sea explorations. With the Turkish Petroleum Law, the periods have
been extended concerning both the first exploration license period and
the total periods.
Another issue worth noticing is that no requirement of investment
was sought for the extension of the period of license within Petroleum
Law No. 6326. This meant that a license could be used for eight years
without making any investment. However, the Turkish Petroleum Law
prevents this inconvenience requiring the submission of an investment
program.
Operating License
Pursuant to Article 8 of the Turkish Petroleum Law, where a discovery
is made within the scope of an exploration activity, an operating license
will be issued so that exploration and production are carried out, and the
petroleum produced is sold during the license period. An operating license
shall be issued for a period of twenty years as of the date of effect of the
work and financial investment program that will be received pursuant to
the regulation, depending on the request of the applicant.
The fields whose operating rights have expired can be put on auction
upon the approval of the Energy and Natural Resources Minister, for the
purpose of obtaining an operating license. However, before putting the
same on auction, the Energy and Natural Resources Ministry will ask the
TPAO whether it wishes this field to be subject to an operating license.
Upon request of the TPAO, the field shall not be put on auction. Such a
regulation suggests that the privilege of the TPAO has been maintained.