Turkey Taps ExxonMobil as Black Sea Gas Discoveries Grow

Core Insights - Turkey's state-owned oil and gas company, Turkish Petroleum Corporation (TPAO), has signed a memorandum of understanding with Exxon Mobil affiliate ESSO Exploration International Limited to explore new oil and natural gas prospects in the Black Sea and the Mediterranean [1][2] Group 1: Agreement Details - The agreement aims to enhance operational efficiency and accelerate hydrocarbon discoveries by leveraging TPAO's deepwater exploration capabilities alongside Exxon Mobil's international expertise [2] - The MoU was signed in Istanbul by TPAO General Manager Cem Erdem and Exxon Mobil Vice President John Ardill [2] Group 2: Offshore Ambitions - The deal supports Turkey's expanding offshore ambitions, particularly in the Black Sea, where the Sakarya gas field is pivotal in reducing energy import dependence [3] - Sakarya began supplying gas to the Turkish grid in September 2023, with production projected to rise to 2.3 billion cubic meters in 2024 and daily output expected to exceed 3.3 billion cubic meters in 2025 [3][5] Group 3: Recent Discoveries - TPAO announced a new gas discovery near Sakarya, adding an estimated 75 billion cubic meters of reserves from the Goktepe-3 well, raising total discovered Black Sea reserves to approximately 785 billion cubic meters [4] - The latest discovery is valued at roughly $30 billion at current market prices [4] Group 4: Future Production Plans - Turkey plans to scale production further with a new floating production platform expected to come online in the third quarter of 2026, potentially increasing Sakarya's output above 18 million cubic meters per day [5] - The ultimate goal is to raise total domestic gas production to 40 million cubic meters per day by 2028 [5] Group 5: Broader Energy Cooperation - The TPAO–ExxonMobil agreement follows broader energy cooperation, including a liquefied natural gas supply deal signed earlier this year [6] - Such partnerships are central to Turkey's strategy to boost domestic production, diversify supply, and position the country as a regional energy hub [6]