Turkey eyes regional energy expansion as Black Sea gas output rises

Turkey's daily natural gas production at its flagship Sakarya field in the Black Sea has reached around 9.5 million cubic metres, Energy Minister Alparslan Bayraktar said, as the country ramps up its energy ambitions both at home and abroad.

Bayraktar told reporters in the northern province of Giresun that Turkey aims to finalise an agreement next month allowing state energy firm TPAO and a foreign partner to explore a Black Sea block off the coast of neighbouring Bulgaria.

"We are about to conclude an agreement in the Bulgarian economic zone. Most likely next month, TPAO and a foreign company will sign a deal for a block in Bulgarian waters," he said.

The new Sakarya field accounted for about 6.6% of Turkey's 53 bcm gas consumption last year, Reuters calculations show.

Turkey, which imports over 90% of its energy needs, is pushing to cut its import bill and boost supply security by developing domestic resources and expanding international partnerships in oil and gas exploration.

Bayraktar said Turkey was interested in two new offshore fields in the Caspian Sea region, including Azerbaijan, and in new fields in both northern and southern Iraq.

In Somalia, where Turkey recently signed an oil and gas exploration deal, seismic data collection is expected to conclude by the end of May, with a decision on drilling likely by year-end.

Turkey has also added three onshore blocks to its offshore licences in the Horn of Africa nation, Bayraktar said.

"Somalia's offshore seismic survey will be completed around the end of May. By the end of the year, we will make our decision on drilling," he said.

TPAO has also signed agreements with Pakistani companies to jointly bid for exploration licences offshore Pakistan, and Ankara is seeking to establish partnerships to develop oil and gas fields in Turkmenistan, from which it recently started importing natural gas.