Turkish oil search firms going into consolidation

ANKARA - Reuters

Transfer of companies is to lead Turkey to conduct more active operations abroad, analysts say.

The Turkish Petroleum International Company (TPIC), a subsidiary of the Turkish Petroleum Corporation (TPAO), is to be transferred to the Petroleum Pipeline Corporation (BOTAŞ) following a capital rise. It has been predicted the move will spur Turkey’s petroleum operations abroad.

The capital of the company, which recently obtained permission to search for and produce petroleum in other countries, will be raised to $500 million from $150 million and after this process, the company will be transferred to BOTAŞ petroleum Pipeline Corporation, according to yesterday’s announcement in the Official Gazette.

BOTAŞ’s foreign popularity and experience with international energy projects will enhance the strength of TPIC in projects abroad as well as bring a flexible working model, sector analysts have said.

With this transfer, Turkey will concentrate more on petroleum exploration and production operations abroad, particularly in northern Iraq, analysts have also said.

Last November Reuters reported that a new Turkish company was conducting talks with at least one foreign company and the northern Iraqi regional Kurdish authority to join forces to buy petroleum blocks in the region.