TURKEY - Exploration.

Several companies are exploring for oil and gas in Turkey's 18 Petroleum Districts. A decline in exploration since 1995 has led to a fall in oil production. Peak output in Turkey's oil history was reached at 90,400 b/d in 1991.

Only about 1,400 exploration and appraisal wells have been drilled in the whole country since 1961. The Turkish portion of the Arabian Basin is less explored with fewer wells per acre drilled than in the rest of the Arabian Basin.

In 1995 Shell cut its exploration considerably and sold its interests in 27 fields to Perenco, a multinational group based in Paris and London. Mobil (now part of ExxonMobil) has done the same. But both have remained active in Turkey's upstream and downstream sectors.

Shell had become convinced since 1993 that the prospects in south-eastern Turkey were limited and that there were no significant deposits of high quality oil similar to those found in Syria, across the border.

Exploration for oil in Turkey dates back to the 1880s, with small discoveries made years after Baku, capital of Azerbaijan, began to be called "a new Texas" for the Russian empire. Exploration was resumed after World War I, and the first commercial oil discovery was made in 1945 at Raman in the south-eastern district of Siirt. But it was not until the early 1950s, six years after World War II, that oil production began.

The explorer at the time was Turkey's State Minerals Exploration Institute (MTA). With the help of some Western experts, MTA found oil at Garzan in 1951, also in Siirt close to Raman. But its work did not satisfy Ankara.

The state formed Turkiye Petrolleri Anonime Ortakligi (TPAO) in 1954 to take over from MTA, to invite foreign companies to explore for oil and produce it as partners, and to handle the downstream sector. Many fields were found in the subsequent years.

In 1958, a JV with American Overseas Co., called Aladdin/Amoseas (now known as Aladdin Middle East), made an oil discovery at Kahta. The field was small, containing heavy 11.5 deg. API oil, and the US firm later sold its stake to a group of private Turkish interests represented by a company called Ersan, which later was called Aladdin Middle East. Aladdin as operator found other oilfields in the subsequent years (see Part 2 in next week's Review).

Mobil came in during the late 1950s and in 1960 found the Bulgurdag field containing 37.9 deg. API oil in the Adana Basin of District 14. It was the first discovery of high quality oil in Turkey. Sell came in during the late 1950s and later found many oilfields (see Part 2).