Within the natural gas exploration in Black Sea, Turkey firstly needs to drill test wells in order to understand the proven reserve amount in the gas field. It is also stated that Turkey will be one of the global natural gas producers and the new reserve will strengthen Turkey’s position in international gas negotiations.
Murat Yazici, the co-founder of Yazici Attorney Partnership was the moderator of the online meeting held by Yazici Attorney Partnership with Petroleum and Natural Gas Platform Association (PETFORM) on natural gas discovery in the Black Sea.
Retired Ambassador Mithat Rende stated in the meeting that 320 billion cubic meters of natural gas exploration in Sakarya Gas Field will change and add a new dimension to Turkey. Rende emphasized that Turkey will be one of the global natural gas producers within this gas exploration and he said:
‘’I believe that the gas volume will be much higher when the field is drilled more deeply and test wells should be drilled for that; after the drillings that will take a certain time, we will reach the proven reserve in the field. Whether Turkey will continue alone or make use of the proven reserve with an energy company is not certain and time will show the answers to the related questions. However the reserve is not located in a disputed place; hence, I think that it will start contributing on Turkish economy in a short time.’’
Rende stated that the natural gas discovery in Black Sea is very crucial for international gas import contracts of Turkey; the discovery will strengthen the position of Turkey in the negotiations of these contracts that expire in 2021. Rende reminded that apart from the natural gas discovery in Black Sea, Turkey is also active in Eastern Mediterranean and said:
‘’ It is very important for Turkey to continue offshore drilling and to make exploration if possible in the Eastern Mediterranean. Turkey needs to be a producer country in East Mediterranean; then the conditions may change. Therefore, I hope the current tense situation will be resolved through a dialogue in the Eastern Mediterranean, but it is very important for Turkey to resolutely protect its vital conditions in there.’’
‘’There will be no problem in financing.’’
Murat Kalay, the board chairman of PETFORM stated that there will be 3 main steps before making production from the natural gas field in Black Sea, he mentioned these 3 steps as; development of the field, transition to regular production level and periods of regression. Kalay emphasized that the development step is especially cost-oriented. He said:
‘’It is aimed that the production will be started at 2023 in this gas field and I believe that this goal is achievable. I do not think there will be any financing issues because, Turkey consumes 45-50 cubic meters of natural gas annually. In this sense, I do not think that there will be any crucial problems in consuming and marketing the gas in Black Sea; in other words, risks will be minimized. The financing of the project may also be easy through international foundations. Also, considering the investments of Romania and Bulgaria in the Black Sea, I think that a common synergy can be created here with common sense with the participation of international players; this common synergy will positively affect the financing of the project.’’
Gokhan Yardim, the manager of Anatolian Natural Gas Consultancy Partnership and Company stated that the production cost in the field should be less than the gas cost. Yardim reminded that Turkey’s long-term gas import contracts will end starting from 2021 and he said:
‘’ It would be very logical to use locally produced natural gas instead of importing pipelines and liquefied natural gas (LNG) with long-term import contracts. In this respect, I think that domestic natural gas will not affect spot LNG imports.’’
source: AA / translated by Bazaar Team