Middle East: Turkey

MIDDLE EAST

Dr. A. F. Alhajji, Contributing Editor, Boulder, Colorado

Turkey

The collapse of Turkey’s economy in February eroded all the benefits of free trade, reforms and privatization. The collapse took Turkey one step back in its quest to join the European Union, and the economic situation may negatively impact drilling activities this year and next year.

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After corruption charges were filed against him, Turkish Energy Minster Cumhur Ersumer resigned at the end of April. Along with 15 other high-ranking officials, prosecutors accused him of impropriety in awarding lucrative energy contracts.

Exploration. Romania’s Petrom made a 4,000-bpd oil discovery late last year in the southeastern province of Batman. Another oil discovery was made in the same period by Turkish firm TPAO in the Kozluk Selmo Block. The company plans to produce 2,500 bopd from the field.

Amity Oil struck a gas / condensate discovery late last year, about 100 km (62 mi) west of Istanbul. The Gocerler 1 flowed at a maximum sustainable rate of 12.4 MMcfgd. Company estimates indicate that the field may hold 70 Bcf of gas. Crews were working this spring, to bring the field onstream as quickly as possible, to supply two privately owned power plants. Southeast of Gocerler 1, Amity drilled Velimese 1 last December to 4,039 ft. Unfortunately, two gas-bearing zones were not commerical.

Last January, Zarara Oil & Gas spudded the Canhidir 1 wildcat, in the Thrace basin of European Turkey. The well was drilled to a roughly 4,600-ft (1,400-m) TD. Although it was non-commercial, Zarara intends to further evaluate other portions of the Kandamis License.

Drilling / development. According to the Turkish General Directorate of Petroleum Affairs, the total number of wells drilled in 2000 was unchanged from 1999’s level, at 30. No offshore wells were drilled, compared to two in 1999. For 2001, 34 wells are expected to be drilled, including four offshore.

Production. Oil output declined 4.7%, to 52,676. Gas production also declined 12.8%, to 61.7 MMcfd in 2000. TPAO’s oil production decreased 9.6%, while its gas output fell 8.9%.

The number of active oil-producing wells increased from 809 in 1999 to 813. Two oil wells are flowing naturally while 811 wells are on artificial lift. The number of gas producing wells increased by 10, to 47.

Estimated proven oil reserves stood at 280.9 MMbbl at the beginning of 2000, while natural gas reserves reached 303.7 Bcf.