Mikaila Adams
OGFJ, Associate Editor

Agreement gives company 25% interest over 7.4 million acres offshore Turkey

An ExxonMobil affiliate recently signed an agreement with a Petrobras affiliate and the Turkish National Oil Company (TPAO) to explore for hydrocarbons over 7.4 million acres in the deepwater Black Sea offshore Turkey.

Under the terms of the farm-in agreement, ExxonMobil Exploration and Production Turkey BV will acquire a 25% interest in the Sinop, Ayancik and Çarşamba sub-blocks of the AR/TPO/3922 exploration license. Petrobras will retain a 25% equity interest in the block and will remain the operator. TPAO holds the remaining 50% interest.

"We look forward to utilizing the technologies and expertise of all three companies as we explore for potential commercial resources in the Black Sea," said Mehmet Uysal, CEO of TPAO.

"We are pleased to add this prospective acreage to our global portfolio and expand our presence in the deepwater Black Sea,” said Russ Bellis, exploration director, ExxonMobil International Ltd.

The new venture builds on an agreement signed by ExxonMobil and TPAO in November 2008 that marked ExxonMobil’s entry into the Black Sea. The agreement partnered the two companies to jointly explore deepwater prospects off the coast of the Black Sea port cities of Samsun and Kastamonu (Samsun block of AR/TPO/3922 exploration license and the eastern portion of AR/TPO/3921 exploration license).

The agreement is subject to approval by the Turkish Government.

TPAO, Turkey's sole national oil company, was founded in 1954. In addition to onshore and shallow water operating experience in Turkey, TPAO has interests in various projects in Azerbaijan, Kazakhstan, and Libya.

Petrobras commenced operations in Turkey in 2006, when two blocks were awarded after bidding process for deep water exploration and production in the Black Sea promoted by TPAO. The company has completed seismic surveys and is prepared to start drilling its first exploratory well in the country.