SOCAR signals potential cooperation with Turkish Petroleum in Black Sea

SOCAR signals potential cooperation with Turkish Petroleum in Black Sea
# 17 June 2021 16:13 (UTC +04:00)

Turkish Petroleum Corporation (TPAO) and the State Oil Company of the Azerbaijan Republic (SOCAR) could work together in field development and production of Turkey's giant gas discovery in the Black Sea, Vagif Aliyev, deputy chairman of SOCAR Turkey told reporters, APA reports citing Anadolu Agency.

SOCAR, with much experience in natural gas and oil field development, has been investing and collaborating with Turkish Petroleum Corporation since 1994.

Therefore, Aliyev suggests it is well placed to cooperate in developing the giant Black Sea discovery, considered to be of strategic importance to the country.

"Professionally, it is in our field of interest," he said.

Aliyev’s comments come after the visit of Turkish President Recep Tayyip Erdogan to Azerbaijan on Tuesday, who in a meeting with his Azerbaijani counterpart Ilham Aliyev discussed the potential cooperation of both SOCAR and TPAO.

The SOCAR chair also proposed that cooperation with TPAO could extend to investments in third countries, with potential upcoming projects in an “energy-rich third country.”

SOCAR is Turkey's largest foreign investor with investments of about $16.5 billion made through its subsidiary SOCAR Turkey.

Turkey’s largest gas find, totaling 405 billion cubic meters (bcm), was discovered by the country’s drillship Fatih in the Sakarya Gas Field in the Black Sea last year.

This month, Turkey announced a second discovery of 135 bcm, bringing the cumulative gas discovery total to 540 bcm.

Turkey's Energy and Natural Resources Minister Fatih Donmez said the maximum annual production from the field could range between 15 and 20 bcm, corresponding to around 30% of the country's yearly gas consumption, which reached 48.2 bcm in 2020.

Turkey’s new gas discovery could alleviate much of its gas import dependence, 48 bcm of which mainly comes from Russia, Azerbaijan, and Iran via pipelines along with liquefied natural gas from several countries, including Nigeria, Algeria, and the US.

The first production from the Sakarya field plans to start by 2023.