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    Shale Gas in Turkey

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Summary

Turkish Association of Petroleum Geologist’s (TAPG) Executive Committee Geologist, Cem Karatas recently told Natural Gas Europe, about technological, juridical, and environmental aspects of shale gas development in Turkey.

by: Olgu Okumuş

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Natural Gas & LNG News, News By Country, Turkey, Shale Gas , Top Stories

Shale Gas in Turkey

As the Turkish parliament starts to debate a controversial draft of Turkey’s new petroleum law, Turkish Association of Petroleum Geologist’s (TAPG) Executive Committee Geologist, Cem Karatas recently told Natural Gas Europe, about technological, juridical, and environmental aspects of shale gas development in Turkey.

Karatas graduated from Middle East Technical University (METU) in Ankara. After a short academic career at METU, Karatas joined the TPAO in 2002 as a petroleum geologist. During his ten years of professional career of professional work at the national oil and gas company of Turkey, he has contributed to a number of projects, including those in Turkey's southeastern fields.   

What is the role of in TAPG in Turkey’s shale gas exploration?

As you know, I am wearing two hats -- I am an executive member of TAPG and a TPAO geologist. Today, I will be answering your questions wearing my TAPG hat, as an independent expert.

TAPG was founded on August 2, 1958 in Ankara. This period corresponds to the first peak of exploration activities in Turkey after the Petroleum Law 6326 was passed. During this period, approximately 20 foreign petroleum companies were active in exploration within Turkey.

The main purpose of TAPG is the idea that a professional society has responsibilities for establishing an environment in which petroleum geologists will follow today's developments in globally-accepted scientific concepts, technologies and business practices. Today, TAPG continues this mission by publishing the semiannual TAPG Bulletin and various symposium proceedings, holding a distinguished lecture series and organizing oil and gas events across a broad spectrum, from local symposiums of geological focus to business-oriented international meetings. As a principle, TAPG always maintains close ties with other international geosciences organizations and is an affiliated society with the American Association of Petroleum Geologists.

TAPG will continue activities oriented toward hydrocarbon exploration both on a national and international scale, with many members from petroleum companies, universities and research institutes. These connections should help establish solid business practices in every aspect of exploration and development for Turkey. TAPG is proud to have already secured an important place among worldwide professional societies with its respected members active in various aspects of oil and gas business.

Turkey’s unconventional oil and gas plays are getting more attention. TAPG has confirmed that Turkey’s estimated shale gas reserves as of 2013 are 1.8 trillion cubic meters. What is the expected production capacity? What do these reserves represent for Turkey’s consumption?

Varied numbers of reserves have been announced in different occasions for shale oil and gas in Turkey.  However, it is still early to declare a number for production capacity because we are not in production phase--projects are still in the exploration phase. We are currently drilling a pilot well close to Diyarbakır in order to get data and illuminate the subsequent pilot well programs. If everything goes well, I believe that these wells will be able to contribute to Turkey's oil and gas production.

In which part of Turkey are these shale gas exploration activities being conducted?

Turkey’s expected shale gas reserves are located in two regions of the country--the northwest, in the Thrace Basin (near the border with Bulgaria) and in the southeast, near the border with Syria. These are the current targets for shale oil and gas studies and exploration activities. However, there might be some more candidates for unconventional business, like basins located in the central Anatolia and eastern regions. Initial studies show that these areas are also worth a detailed look.

Turkey’s shale gas reserves have drawn foreign interest. Which companies are conducting research in Turkey? In which stages are they in their activities? 

A number of many different companies are giving importance to the shale oil and gas business in Turkey. Some of them are in the exploration phase, like Transatlantic Petroleum Ltd. and Shell. The rest are conducting initial surveys in prospective areas and looking for collaboration with TPAO.

Royal Dutch Shell and Türkiye Petrolleri Anonim Ortaklığı began exploring for unconventional resources (shale gas and/or oil) last year in the eastern province of Diyarbakır with Sarıbuğday-1 well . Drilling of the well still continues. The Canadian firm Transatlantic Petroleum is also active in the region and in Thrace.

Many other major companies will follow these examples if they come up with positive findings

What is the role of TPAO on these research activities?  What is the form of cooperation, if there is any?

TPAO, as the National Oil and Gas Company of Turkey, is the driving force of all these types of research and exploration activities, not only for conventional exploration and production but also for unconventional activities as well. In parallel to current Turkish governmental energy policies and with the support of the Ministry of Energy and Natural Resources, TPAO is in a proactive role and will be in the future as well.

Are they any challenges to overcome for Turkey to develop its shale gas market? What are the opportunities and threats for Turkey’s shale gas? 

The beginning of conventional oil and gas E&P activities in Turkey goes back to the early 1900s. However, regarding the operations and studies for unconventional oil and gas, Turkey is relatively new to the arena. In my opinion, the inadequacy of in-house developed technology, especially for unconventional production phase, and a deficiency of experienced people are the main challenges in Turkey. At the same time, a lack of equipment in Turkey for this type of business might induce high operation costs at the beginning of the production phase. Water, which will be used in the operations, is an additional challenge considering the current amount of water in the area. The depth of target levels might be another challenge.

However, all these "so called" challenges can be easily handled during the project phases by good project management.

The main opportunity for Turkey is if our current petroleum law and the new draft law encourage more investors in oil and gas business.

What is the Turkish legislation relevant to shale gas exploration? Will the new petroleum law have any impact on shale gas exploration?

Since unconventional oil and gas business is relatively new in Turkey there are no articles or statements in the current or in the new draft law, especially regarding unconventional issues. My expectation is that after the new law is passed by the Turkish parliament, the General Directorate of Petroleum Affairs (GDPA) will prepare some detailed regulations. These regulations will probably have unconventional E&P articles and statements.

Do you think Turkey can become an energy exporter thanks to its shale gas reserves?

This is a quite hard question to answer. We, as country, are very hungry for domestic energy, especially for oil and gas. Our first aim should be meeting our own oil and gas needs. Time and technical studies will show us the rest.

Olgu Okumuş is an affiliated lecturer in energy diplomacy at Sciences Po, Paris and director of strategy at LEO energy diplomacy and political risk advisors. She is also PhD candidate at Sciences Po, Paris, where her research focuses on Turkey’s energy transit policy.

She can be reached at olgu.okumus@leoadvisors.com