Türkiye’s oil and gas production index surges to all-time high of 147.8

Türkiye’s oil and gas production index reached an all-time high of 147.8 in June, spurred by major discoveries in the Sakarya Gas Field and Gabar Mountain, according to the Turkish Statistical Institute (TurkStat). This marks a significant increase from the previous year’s index of 115.7.

Türkiye’s progressive energy production

• The journey of Türkiye’s energy production growth began in 2005 when the index was at 69.6.
• It remained relatively stable around 75 until 2020 when a major natural gas discovery in the Sakarya Gas Field pushed the index to 99.4.
• The index first surpassed the 100-mark in May 2021 and has continued its upward trajectory, reaching 146.1 in March 2024 before peaking in June.

What drives Turkish energy production success?

• Strategic investments: The foundation for this growth was laid in 2017 with the inclusion of Türkiye’s first national drilling ship, Fatih, into the Turkish Petroleum Corporation (TPAO) inventory.
• Key discoveries: In August 2020, Fatih discovered Türkiye’s largest natural gas reserve in the Sakarya Gas Field, leading to a surge in production. As of now, this field alone produces 5.5 million cubic meters of natural gas daily, enough to meet the needs of 2.4 million households.
• Future potential: A floating gas processing platform is expected to arrive in October 2024, which will further boost production to supply gas to 5 million households.

Recent developments in Türkiye’s oil production

• Gabar Mountain discovery: In 2022, Türkiye discovered high-quality crude oil in Gabar Mountain, with reserves estimated at 150 million barrels, making it one of the top 10 onshore discoveries globally that year. In June 2024, daily production from Gabar reached 45,000 barrels, with a target of 100,000 barrels per day.
• Broader exploration: Exploration activities in Southeast Türkiye, particularly outside Sirnak, are ongoing, with significant potential identified. The goal is to achieve a total daily production of over 200,000 barrels, which would account for 20% of Türkiye’s oil consumption.

Türkiye attracts both local and foreign investors

• Expansion in exploration: Türkiye’s oil and gas exploration efforts will intensify, with the Abdulhamid Han drilling ship set to explore new locations in the Black Sea and the Eastern Mediterranean. These efforts are crucial as Türkiye aims to reduce its energy dependence.
• Investment opportunities: The recent production surge presents opportunities for both domestic and foreign investors. As the sector grows, the involvement of private companies alongside national entities like TPAO is becoming increasingly important.

Zoom in: According to Petroleum Platform Association (PETFORM) Chairman Aziz Camci, the increase in production is likely to attract more investors, both domestic and international. Camci emphasized the importance of leveraging Türkiye’s untapped potential in both offshore and onshore reserves, stating, “We must enhance our current capabilities in terms of workforce, equipment, and technology to drive new discoveries.”