332 / 473
ENERGY LAW
319
No. 6326. In this way, holders of petroleum rights are granted the right to
benefit from the incentives for all other investments they make.
Conclusion
With the Turkish Petroleum Law, the national interest notion has
been maintained in the purpose and scope of the law. With the abolition
of the provision providing that the right of permit, exploration and
operation license shall be in favor of the TPAO on behalf of the state,
private companies will be able to enter the relevant field. New provisions
have been adopted with regard to the period for which the exploration
license may be granted. With the requirement to submit an investment
plan with the extension request of the licenses, the cases where the license
is extended without any investment are prevented. The requirement that
the TPAO must be consulted before the fields whose operation licenses
have expired can be put on auction has been adopted and TPAO has been
granted a priority. The income tax deduction, whose reduction to forty
percent has been subject to controversy, has been maintained as fifty-
five percent. All these provisions aim to incentivize the exploration and
production activities in the relevant field with a low cost, simplification
of the operations and provide a competitive environment.