Energy: Oil & Gas, Turkey - Law & Practice
1. General Structure of Petroleum Ownership and Regulation
1.1 System of Petroleum Ownership
Petroleum resources in Turkey are owned by and at the disposal of the State. (For the purposes of the Turkish Petroleum Law, No 6491, (“Turkish Petroleum Law”) the term “petroleum” includes both crude oil and natural gas). However, utilisation rights are granted by way of licences given for definite terms. In such cases, exploration and exploitation licensee holders must pay the State a one-eighth share (12.5%) for petroleum procured from an exploration area or an exploitation area in royalties. Furthermore, the Turkish Petroleum Law allows for the export of 35% of hydrocarbons produced onshore and 45% of hydrocarbons produced offshore, but the remaining yield is required to be retained in Turkey for national needs.
First published by Chambers and Partners, Global Practice Guides, Energy: Oil & Gas, Turkey - Law & Practice 2016.