Energy: Oil & Gas 2019
Under the Turkish Petroleum Law No 6491, the term “petroleum” includes both crude oil and natural gas.
Petroleum resources in Turkey are owned by and are at the disposal of the state. However, upstream interests are granted by way of licences with definite terms. In such cases, exploration and exploitation licence holders must pay the state a one-eighth share (12.5%) as a royalty for petroleum produced from an exploration or production area. 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 to address domestic demand.
For full copy of the article, please click here.
First published by Chambers and Partners, Global Practice Guides, Energy: Oil & Gas – Law & Practice 2019.