TURKEY - TPAO & Its Fields.

TPAO has more than 45 oilfields producing in four south-eastern districts - Siirt, Diyarbakir, Gaziantep and Adana. From 1994 to mid-1998, the state-owned company found about 2-3 fields every year.

TPAO was established in 1954, when it took over from the State Minerals Exploration Institute (MTA). MTA had made Turkey's first major oil discovery at Raman in 1945 and had found the Garzan field close to Raman in 1951. Since then TPAO has made many discoveries, partly with the help of foreign experts (see tables below).

                      MAIN OIL & GAS FIELDS IN TURKEY

Field     Operator  Dscvry   Nature   API       Wells    Rsrvoir     Depth (ft)

Petroleum District 10 - Siirt
Raman      TPAO       1945      O     18.8 deg.     8        UC       4,500
Garzan     TPAO       1951      O     25 deg.      11        UC       4,700
Germik     TPAO       1958      O     19 deg.      10        UC       6,500
Kurtalan   TPAO       1961      O     33.2 deg.    18        UC       5,750
Magrip     TPAO       1961      O     18.4 deg.    20        UC       5,700
Raman W.   TPAO       1961      O     13.3 deg.    96        UC       4,200
Silivanka  TPAO       1962      O     21-25 deg.   18        UC       8,200
Celikli    TPAO       1964      O     35.2 deg.    21        UC      10,500
Selmo     (Mobil)TPAO 1964      O     34.4 deg.    30        Pa       5,800
Malahermo  TPAO       1965      O     33 deg.     susp.      UC        n.a.
Dodan      TPAO       1965      O     36 deg.     susp.      UC        n.a.
Magrip N.  TPAO       1969      O     27 deg.     susp.      UC        n.a.
Yolacan    TPAO       1970      O     19 deg.     n.a.       UC        n.a.
Sezgin     TPAO       1970      O     17 deg.     susp.      UC       5,600
Oyuktas    TPAO       1972      O     31 deg.     susp.      UC       7,600
Yasince    Aladdin    1974      O     29 deg.     n.a.       UC        n.a.
Molla      Aladdin    1974      O        n.a.     susp.      MC        n.a.
Camurlu    TPAO       1975      O/G   12.2 deg.     30       T/UC     5,600
Ikiztepe   TPAO       1976      O     11.3 deg.   susp.      UC       4,900
Beycayir   TPAO       1976      O     26.1 deg.     13       UC       7,700
Selmo W.(Mobil)TPAO   1981      O     34 deg.     n.a.       Pa       6,000
Dincer S.  TPAO       1981      O/G   16.7 deg.     18       UC       5,350
Kozluca W. TPAO       1985      O     12 deg.       29       UC       5,000
Selmo      Petrom     2000      0     n.a.         n.a.      Pa        n.a.

Nature: O = Oil; G = Gas
Age of Reservoir: L = Lower; M = Middle; U = Upper
C = Cretaceous; Co = Coniacian; J = Jurassic; T = Triassic;
Mi = Miocene; P= Paleozoic; Pa = Paleocene; S = Santonian

MAIN OIL & GAS FIELDS IN TURKEY

Field Operator Dscvry Nature API  Wells Rsrvoir Depth(ft)

District 11 - Diyarbakir Kayakoy (Shell)Perenco 1961 O 38.2 deg. 27 UC n.a. Kayakoy S. TPAO 1961

O 30.4 deg. n.a. T/Pa 8,600 Kayakoy W. (Shell) Perenco 1961 O 34.7 deg. 29 T/Pa n.a. Kurkan (Shell) Perenco 1963 O 31.4 deg. 35 UC n.a. Beykan

(Shell) Perenco 1964 O 33.2 deg. 48 UC 4,800 Sahaban (Shell) Perenco 1966 O 33.2 deg. 13 UC

n.a. Kurkan S. (Shell) Perenco 1967 O 34.5 deg. 10 UC n.a. Malatepe (Shell) Perenco 1970 O 32.7 deg. 15 UC n.a. Katin (Shell) Perenco 1971 O 29.5 deg. 8 UC n.a. Malatepe W.(Shell) Perenco 1972 O 33.9 deg. susp. UC n.a. Kock

(Shell) Perenco 1972 O 27.4 deg. n.a. UC

n.a. Barbes (Shell) Perenco 1972 O 30 deg. 22

UC n.a. Yatir (Shell) Perenco 1973 O 31.1 deg.

susp. UC n.a. Sebyan (Shell) Perenco 1973 O

33.4 deg. n.a. UC n.a. Saricak TPAO

1973 O 31.5 deg. 7 UC 5,250 Saricak S. TPAO

1973 O 31.5 deg. 13 UC 5,250 Yenikoy

TPAO 1973 O 31.3 deg. 20 UC 6,400 Yenikoy E. (Shell) Perenco 1973 O 31.3 deg. 2 UC

n.a. Yatir E. (Shell) Perenco 1974 O 30.9 deg. 11 UC n.a. Cabantepe (Shell) Perenco 1975 O 32.8 deg. n.a. UC n.a. Sivritepe TPAO 1977 O 33.4 deg. 4 UC 8,200 Sahaban S. TPAO

1978 O 34.5 deg. 5 UC n.a. Sincan

(Shell) Perenco 1980 O 31.2 deg. 9 UC n.a. Mehmetdere TPAO 1982 O 31 deg. 2

UC 6,700 Kartaltepe TPAO 1982 O 31 deg.

5 UC 6,550 Alcik TPAO 1983 O

34 deg. 4 UC 6,500 Kervan (Shell) Perenco 1983 O 30 deg. n.a. UC n.a. Firat West TPAO

1984-5 O n.a. n.a. Mi/UC n.a. Bectar

(Shell) Perenco 1985 O n.a. n.a. UC n.a.

District 12 - Gaziantep Kahta Aladdin 1958 O 11.5 deg. 25 Co/S 3,500 Piyanko (Shell) Perenco 1968

O 35.5 deg. 3 UC n.a. Adiyaman TPAO

1971 O 27.6 deg. 8 UC 5,800 Adiyaman N. TPAO 1977 O 20.4 deg. susp. UC 9,500 Adiyaman S. TPAO 1977 O 32 deg. susp. UC

5,000 Bolukyala TPAO 1977 O 35.3 deg. susp. UC 10,300 Cemberlites TPAO 1983 O 30.5 deg. 24 MC 6,500 Kahta W. Aladdin 1985

O n.a. n.a. Co/S n.a. Kucukpirin TPAO

1985 O n.a. n.a. MC n.a. Cukurtas

TPAO 1985 O 36 deg. 3 UC 10,000 Akpinar TPAO 1985 O 31.6 deg. 6 UC

10,500

District 14 - Adana Basin Bulgurdag (Mobil) TPAO 1960 O 37.9 deg. 4 M/P  4,300 >TE Age of Reservoir: L = Lower; M = Middle; U = Upper C = Cretaceous; Co = Coniacian; J = Jurassic; T = Triassic; Mi = Miocene; P = Paleozoic; Pa = Paleocene; S = Santonian

TPAO holds about 180 concessions in Turkey. Out of these, 43 are production areas, including joint ventures with BP. In the exploration areas, TPAO is trying harder to find natural gas near the oilfields. The gas is needed for reinjection into old fields where oil reservoir pressure has declined considerably in recent years.

The Raman group of connected fields in Siirt remain the biggest oil producers for TPAO. The first one, Raman, was found in 1945. It produces 18.8o API oil with 4.1% sulphur from an Upper Cretaceous formation at a depth of 4,500 feet. Raman West (Bati Raman), found in 1961, is the largest structure in Turkey producing 13.3o API oil with 5.7% sulphur from an Upper Cretaceous reservoir at a depth of 4,200 feet.

Germik, found in 1958, was TPAO's first discovery and the third oil find in Turkey. The field lies to the north-west of Garzan, not far from Raman. It is on trend with Garzan. But it is small, producing only 80 b/d, compared with 120 b/d in 1998, 150 b/d in the first quarter of 1996 and 180 b/d in 1988. The oil is 19o API with 2.8% sulphur.

Ikiztepe, discovered in 1976 by TPAO, is one of the Siirt fields extending into Syria. Its oil being 11.3o API with 4% sulphur. Ikiztepe's extension on the Syrian side is known as Said field, with both sides producing from an Upper Cretaceous reservoir at a depth of 4,900 feet. Ikiztepe was closed in 1989 because of a rapid fall in reservoir pressure. By end-1988, the field had produced 88,051 barrels. Later Japan National Oil Corp. (JNOC) provided TPAO with assistance for an EOR system at the field.

TPAO is the non-operating partner of the other oil producers in this country (see OMT).

From late 2000 TPAO's exploration efforts in Turkey have not resulted in major oil discoveries. In the autumn of 2000 it found oil in the Kozluk Selmo block in the Batman district. The field went on stream in 2001 at the initial rate of 2,500 b/d. But this declined from late 2001.

Since late 2001, TPAO's production has been exceeding its reserves discoveries. In 1996, TPAO added 18 new wells to its oil production system and their output during that year totalled over 1.33 million barrels. They included the Bozova structure in the Adiyaman axis of fields, which the company discovered earlier in that year. In 1997, the company added 12 new wells which during that year produced almost 900,000 barrels.

During those two years, over 20 old wells were abandoned. Now, the number of active wells in TPAO's production system is more than 780 compared to 670 wells by end-1995. In 1996 and 1997, TPAO drilled more than 45 exploration and appraisal wells with a cumulative depth of more than 55,000 metres. The company made five oil and gas discoveries during those two years.

Mobil in 1964 found another field in Siirt, containing 34.4o API oil. But these fields remained small. Re-exploration resulted in small discoveries. Mobil sold its interests in its producing fields to TPAO in 1994, when their total output was about 3,000 b/d. Mobil continued to operate in the country as an explorer and as a downstream investor.

Shell came in during the late 1950s and took blocks in the Diyarbakir and Gaziantep provinces. It started exploration in 1960. In 1961 it found two connected fields at Kayakoy, in Diyarbakir, containing 34.7-38.2o API oil. At the same time, TPAO found a third connected field, Kayakoy South. This contained 30.4o API oil, but the structure was small.

Shell found many other fields in that region, and all were small. In Gaziantep, Shell's first discovery was Piyanko, containing 35.5o API oil. By 1994, when it offered to sell its interests, it had 27 developed fields together producing about 13,400 b/d. (See summarised profiles of main Turkish oil and gas fields in OMT of this week).

All prospective blocks in Turkey have been licenced. TPAO acts as an operator in its own concession areas and as a partner of foreign companies elsewhere in the country.

Improved E&P terms in March 1983 encouraged a number of firms to explore in Turkey. A major oil discovery in 1989 lured more companies to Turkey. But the pace of discoveries was slow in the subsequent years and many have since left the country.

Those that came included Roy M. Huffington (Huffco) of the US, which acquired 13 licences at the north-western end of the Taurus-Zagros belt and other acreage then said to be rich in gas. Offshore and onshore exploration in Iskenderun Bay was undertaken by TPAO and Salen Energy of Sweden, but the outcome was negative.

US, Canadian and Norwegian companies led by Seahawk of California took the Saros Bay acreage. Barrick Petroleum of Canada joined TPAO in a Black Sea block as well as in the onshore Sinop and Samsun Basins. Lennox Oil of Scotland took the Salt Lake Basin in central Turkey.

In March 2004 Omax Resources of Canada acquired a one third interest in the Adana oil and gas exploration zone in southern Turkey. Omax acquired the stake in return for a 16.7% interest in another Turkish exploration property, the Iskenderun concessions. Following the transaction, Omax will have 33.3 per cent interest in both the Iskenderun and Adana exploration blocks for a net holding of about 127,000 hectares in Turkey.

Toreador is another foreign explorer in Turkey. It will drill its first shallow-water exploratory well, the Ayazli-1, in the western Black Sea offshore Turkey in July 2004 and has selected the well's location from six gas prospects identified to date. A second wildcat will be drilled in 2005. Toreador is operator and holds a 49% working interest in eight Black Sea permits. TPAO, holds the remaining interest.

TPAO also plans to drill the Cendere-20 development well in the second quarter of 2004. The Cendere Field, where Toreador holds a 19.6% working interest in most wells, is located in south central Turkey. In addition, the company has been negotiating for a rig to drill the Calgan oil prospect in 2004 on the Calgan permit south of the Zeynel Field. In the Sinop area north-east of Ankara, Toreador plans to re-enter a well in 2004 that encountered numerous oil and gas shows when it was drilled by another operator in the late 1980s. Toreador operates and holds a 100% working interest in six Sinop permits.

Other firms involved in Turkey have included Atlantic Richfield (Arco - now part of BP), Occidental Petroleum (Oxy), Texaco Nederland BV (now part of ChevronTexaco), Unocal of the US, and Canada's Asamera and Denison Mines. Unocal also joined TPAO in exploring for geothermal energy in eastern Turkey, where the state firm has 30% in a $300m venture.