PETFORM is leading the transformation of Türkiye's energy sector in its 25th year. Chairman Çağatay Beydoğan says, "Türkiye is no longer just an energy producer, but is progressing towards becoming a regional powerhouse."

Emin Kaya, Editor-in-Chief of Gündem Enerji, spoke with Çağatay Beydoğan, President of PETFORM, a prominent representative of the energy sector, about recent developments in Türkiye's oil and natural gas sector, the transformation of the industry, and the role of the private sector. Beydoğan stated, "Turkey has the potential to become a hub not only for its own production but also for managing regional energy operations."

PETFORM'S 25TH ANNIVERSARY AND ITS ROLE IN THE INDUSTRY

You are celebrating PETFORM's 25th anniversary. The events organized as part of this celebration are quite remarkable. First of all, could you tell us a little about PETFORM?

First of all, thank you for your interest in PETFORM. Because making our voice heard in the sector is sometimes not easy. With your support, we have the opportunity to do so.

This year we are celebrating PETFORM's 25th anniversary. Our association was founded in 1999, spearheaded by exploration and production companies operating in Türkiye. In the early years, our primary focus was on developing oil and natural gas exploration and production investments in Türkiye.

Over time, our structure has expanded. With the enactment of the Natural Gas Market Law, companies involved in natural gas trading and distribution also joined us. Thus, we became an association representing not only the production side but also the import and trade side.

In recent years, our structure has been further strengthened by the increasing drilling and field services activities, particularly spearheaded by Turkish Petroleum, and the inclusion of service companies into PETFORM. Today, PETFORM represents the sector with 45 member companies operating in three main areas: exploration and production, natural gas trading, and oilfield services.

Our mission is to bring attention to the problems faced by companies operating in these fields, develop solutions for regulatory changes, and strengthen sectoral dialogue. In this context, we work closely with institutions such as the Ministry of Energy, MAPEG, EPDK, BOTAŞ, and TPAO.

INTERNATIONAL COOPERATION AND NEW OPPORTUNITIES

You recently organized an important event with CEEC in Ankara. I had the opportunity to attend. Could you tell us about the purpose and highlights of this event?

Türkiye is no longer a country focused solely on its own resources in the energy sector; it now has a vision of becoming a regional energy hub. The steps our government is taking in this direction are extremely important.

As PETFORM, in our 25th year, we wanted our members to align with this vision. To this end, we organized an international meeting in cooperation with the Continental Europe Energy Council (CEEC).

CEEC is a platform that has been bringing together energy companies from Eastern Europe, the Balkans, the Caucasus, and Central Asia for nearly 30 years. It has 55 corporate members. The Canadian Global Energy Forum, representing companies in the Alberta region of Canada, also participated in the event.

In total, representatives from more than 100 international energy and exploration-production companies gathered in Ankara. Our aim was to showcase Türkiye's leadership in the energy sector and to pave the way for future Türkiye-based regional operations.

The event lasted three days: On Thursday, a special session was held with the Canadian delegation.

On Friday, TPAO, EPDK, MAPEG and private sector companies described Türkiye's investment environment.

On Saturday, we organized a field trip. Participants visited Petrotek's domestic drilling rig manufacturing facilities in Ankara. The company is currently producing its fourth rig; the first three rigs are actively drilling in TPAO fields.

This event both increased PETFORM's international visibility and allowed us to showcase Türkiye's energy production capabilities to foreign investors.

THE REALITY OF OIL AND NATURAL GAS IN Türkiye: GABAR AND THE BLACK SEA

Where does Türkiye stand in terms of oil and natural gas production? In particular, how have the Gabar and Black Sea projects transformed the economy?

Türkiye's oil story spans almost a century. The legislative infrastructure was established in the 1950s, TPAO (Turkish Petroleum Corporation) was founded, and laws encouraging foreign investment were passed. During that period, more than 20 international companies came to Türkiye.

With fields like Raman and Karakuş, production reached significant levels. In the 1970s, Turkey could meet 25% of its needs with domestic production. However, due to increasing consumption and the natural decline of the fields, production decreased. In the 2000s, daily production of 50,000 barrels could only meet 5% of the demand.

On the natural gas side, the transformation that began in the 1980s has now reached 20 million subscribers. Natural gas power plants play a base load role in electricity production, especially during drought years.

The situation has completely changed in the last three years. Black Sea gas and Gabar oil have reshaped Türkiye's energy profile. With the production commissioned in the Black Sea, 10 million cubic meters of natural gas are produced daily. This is equivalent to approximately 3-4 billion cubic meters per year.

While Türkiye's annual consumption is around 50 billion cubic meters, it will approach 60 billion cubic meters this year. Thus, Türkiye has become the third largest natural gas market in Europe after Germany and Italy.

On the oil side, a new capacity of 80,000 barrels per day has been commissioned in the Gabar field. Total production has reached 130,000 barrels; the target is 200,000 barrels. TPAO will commission 20 more new rigs next year and aims to drill 300 wells. Going from 10-15 wells to 300 shows that Türkiye has become a global oil market.

THE ROLE OF THE PRIVATE SECTOR AND THE NEED FOR LICENSING

TPAO plays a significant role, but what is the private sector's share in production?

The total reserves registered by the private sector to date are approximately 1 billion barrels, while TPAO's recent discoveries are around 1.2–1.3 billion barrels. Therefore, in terms of contribution, the two sides are quite close. As PETFORM, we want the private sector to maintain this momentum.

How can the private sector be made more active in this area?

From a legislative standpoint, Türkiye's infrastructure is extremely suitable. The Petroleum Law has an investor-friendly structure. Turkey stands out in its region with its skilled workforce, technical capacity, and financial infrastructure. However, access to exploration licenses for the private sector should be facilitated.

Currently, the majority of licenses are held by TPAO (Turkish Petroleum Corporation). We believe that making open areas available for the private sector will strengthen the investment cycle. Because a company takes over the site, assembles a team, conducts seismic research, drills a well; and starts production over the years. For this cycle to work, the private sector's share must increase.

This issue was also raised at the Exploration and Production Consultation Meeting. For the first time in many years, no company cited a "regulatory obstacle." This is a result of both PETFORM's efforts and the approach of MAPEG and TPAO.

A Hungarian company, a member of CEEC, also attended the meeting and stated, "We want to invest in Türkiye." Discussions have begun. This clearly demonstrates the international interest in Türkiye.

BALANCE IN ENERGY TRANSFORMATION: FOSSIL AND RENEWABLE RESOURCES

Fossil fuels have long been criticized, while renewable energy is rapidly gaining ground. Do you see these two areas as rivals or complementary?

These are definitely not competing resources, but complementary ones. There is a historical chain of transformation in energy: coal → oil → natural gas → renewable energy. Each new resource does not completely eliminate the previous one, it only changes its role.

Even today, many countries are returning to coal for supply security. Therefore, oil and natural gas are essential elements in maintaining the system's balance during the transition period.

The decline in investment in fossil fuels in recent years has increased the risk of supply shortages worldwide. This could lead to price instability. Therefore, a balanced transition is necessary. As PETFORM, we support both the continuation of oil and natural gas exploration investments and the increase in renewable energy capacity.

Renewable energy alone does not appear to be able to meet the base load.

Yes, natural gas power plants play a key role here. Türkiye's rapidly increasing energy demand, transportation and industrial growth, and sectors like aviation make continuity of supply essential.

Let's consider the example of Istanbul: millions of vehicles, heavy maritime traffic, an airport with a capacity of 100 million passengers per year… This scale shows that demand will continue to increase. Therefore, Türkiye needs to guarantee its supply security under all circumstances. This is only possible by investing in both fossil and renewable energy simultaneously.

Finally, do you have any other message you'd like to add?

Our primary goal at PETFORM is to contribute to Türkiye's energy vision. Opening up opportunities for the private sector in exploration and production, and enabling it to play an active role in natural gas trading, will accelerate investments. Furthermore, we want Türkiye to become a management hub not only for its own exploration activities but also for regional energy operations. With its logistics, engineering, and investment capacity, Turkey has the potential to coordinate exploration and production activities in neighboring countries from here. This will allow both Turkish companies and Turkish engineers to have a greater say in the regional energy sector.

KeyFacts Energy Industry Directory: PETFORM