Ankara in talks with ExxonMobil over $1.1B LNG deal, FT reports

Türkiye engages in talks with ExxonMobil for a significant LNG deal, signaling a strategic shift from Russia in energy procurement

Türkiye is engaged in negotiations with the U.S. energy giant ExxonMobil for a multibillion-dollar deal aimed at purchasing liquefied natural gas (LNG), to curb its dependence on Russian energy, the Financial Times reported Sunday. 

ExxonMobil Corporation is an American multinational oil and gas corporation and the largest direct descendant of John D. Rockefeller’s Standard Oil.

In an interview with the FT, Energy Minister Alparslan Bayraktar emphasized Türkiye’s objective of establishing a “new supply portfolio” to diminish dependency on any single energy partner.

“The pact under discussion could extend over a decade,” Bayraktar noted, indicating the potential longevity and significance of the proposed deal. However, he clarified that the commercial terms of the agreement with Exxon are still subject to negotiation.

According to the Financial Times, Exxon aims to expand its LNG portfolio to 40 million tonnes a year by 2030.

Russian exports to Europe fell

This development comes amidst declining Russian exports to Europe, with European nations increasingly turning to LNG from global sources in response to geopolitical tensions, particularly the conflict in Ukraine. 

Despite Türkiye’s recent successes in oil exploration, particularly in the northern Black Sea and southeast regions, the nation remains reliant on imports from various countries, including Russia, Azerbaijan, and Iran, as well as LNG from Algeria, Qatar, the U.S. and Nigeria.

Koca Yusuf TP1500, Türkiye’s new project

Additionally, Türkiye’s Energy and Natural Resources Ministry announced the commencement of drilling operations by the “Koca Yusuf TP1500,” a domestically produced drilling rig, in the Gabar field.

This initiative aims to elevate Türkiye’s daily oil production to 100,000 barrels by the year’s end, showcasing the nation’s commitment to enhancing energy independence.

Source: Newsroom