Oil and Gas: Limited Supply
Proven natural gas reserves in Turkey amount to 6.17 billion cubic metres (BCM). The country produces a very small amount of natural gas, with total production amounting to 22 billion cubic feet (BCF) in 2012 and providing less than 2% of consumption. Turkiye Petrolleri A.O. (TPAO), BP, and Royal Dutch Shell account for most of the country’s natural gas production. In recent years, a number of natural gas fields have been brought on line in the Black Sea, including Akçakoca, East Ayazli, Akkaya and Ayazli. Despite the limited proven reserves, gas exploration efforts have increased, particularly offshore. Supermajor Royal Dutch Shell is poised to spend $300 million on an exploration programme in the Turkish Black Sea, and ExxonMobil, Chevron and Petrobras have ongoing exploration programmes there. Exploration for unconventional (shale) gas reserves has also increased. Despite the ongoing struggle for Kurdish autonomy by the PKK and potential spillover from the war in Syria, Shell has an agreement with TPAO for shale gas exploration, with the Turkish firm taking a 70% share of production and Shell receiving 30%.