Turkey, Norway to cooperate on energy
Wednesday, May 07, 2014
ANKARA - Turkey's state-run oil company TPAO seeks partnership with Norwegian oil giant Statoil in deep water oil exploration and production projects based in the Black Sea and Mediterranean Sea.
A group of TPAO officials led by acting General Manager Besim Sisman has met with a team from Norway's Statoil, including Geir Westgaard, the company's vice-president for Global Business Strategy and Development, and Demet Derbil, Statoil's Turkey general manager in Ankara, the Turkish capital.
The energy-dependent Turkey strives to increase its domestic production of oil and natural gas, which is estimated to be around 6 percent of its total energy use, by boosting seismic and exploration activities.
The Turkish oil company mulls extending its efforts into deep sea exploration with the hope of increasing its domestic production with newly discovered wells. The company's project for deep sea exploration arose after onshore production failed to satisfy a significant portion of demand, which Turkey heavily fills with energy imports.
Statoil and the TPAO discussed possible partnership options including the exploration in the Black Sea and the Mediterranean Sea as Statoil has extensive experience and know-how in deep sea upstream activities.
In a state visit to Oslo earlier in May, Turkey's energy minister expressed eagerness to participate in on and offshore upstream projects as well as cooperate with Norway on participating in Azerbaijan's Shah Deniz 2 field and the Trans-Adriatic Pipeline project (TAP) -- both in which Statoil is a significant stakeholder.
Turkey and Norway shone as possible alternatives for European energy supply following security problems from the Crimean crisis. The crisis generated increasing concerns of disruptions in the flow of natural gas via pipelines passing through Ukraine to EU countries.
Turkey is seen as a reliable alternative energy route for pipelines carrying Caspian and Middle Eastern resources to Europe, while Norway as a reliable supplier of natural gas and oil flowing from its offshore wells to the continent.
The minister, in his visit to Norway, told Statoil officials that Turkey demands Statoil exports of liquefied natural gas to Turkey, which could total up to 6 billion cubic meters.
Statoil is a Norwegian multinational oil and gas company with operations in 36 countries with 23 thousand employees. The company is ranked as the world's eleventh largest oil and gas company and the twenty-sixth largest company by profit in the world. The Norwegian government holds 67 per cent of the company's shares and ownership interest is managed by the Norwegian Ministry of Petroleum and Energy.
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