Unlocking Turkey’s Potential
It is well-known within the industry that Turkey can benefit greatly from increased E & P investment and a much broader application of modern technology and industry practices, including 3D seismic, deeper vertical drilling, horizontal drilling, hydraulic fracturing, workovers and recompletions, and secondary recovery methods. These practices and technology, if employed in Turkey on a larger scale, have the potential to dramatically increase reserves and production from both conventional and unconventional plays. While the exact quantity of that potential remains uncertain, due to the infancy of these practices in the country, there is reason to be very optimistic about, based on the initial results of some pioneering local and international players.
Welcoming Investment Climate
In addition to this untapped potential, Turkey’s competitive royalty rate of 12.5% and corporate tax rate of 20% result in relatively high netbacks from a global context, and make Turkey a very lucrative target for investment. Given strong reference prices, and a government take that is amongst the best in the world, companies operating in Turkey are capable of generating very robust returns.
Historically, Turkey’s oil and natural gas exploration and development has primarily been focused in southeast Turkey in the Anatolia Region, near the border of Iraq, Iran and Syria, where over 100 oil fields have been discovered to date. The other area of focus has been the Thrace Basin, a natural gas prone region located in northwest Turkey where approximately 25 natural gas fields have been discovered to date. The Thrace Basin is a prospective target for unconventional gas (tight gas and possibly shale gas) that has the potential to be unlocked with fracturing technologies in vertical and horizontal wells.
A Wealth of Opportunity
Turkey’s proximity to energy consuming markets, relative ease of monetization, strong realized pricing, robust crude oil and natural gas prices and favorable fiscal terms make it an excellent prospect for international investment. As new players enter the market, bringing with them new capital, new technology, and new industry practices, Turkey’s oil and gas sector is poised to flourish like never before
Turkey’s expected shale gas reserves are located in two regions of the country--the northwest, in the Thrace Basin and in the southeast. These are the current targets for shale oil and gas studies and exploration activities. Initial studies show that basins located in the central Anatolia and eastern regions are also worth a detailed look.
Among these, the Dadas Shale—a huge unconventional shale play located in the southeast is significant. The Dadas Shale is at an earlier stage and has the size and most potential to ignite Turkey’s energy sector. It’s a geological look-alike to the Woodford and Eagle Ford shales in the US.
This large shale is estimated to have more than 100 billion barrels of original oil in place (OOIP).
OZOIL licenses & leases cover 600,000 acres of the Dadas Shale