The Turkish Petroleum Law numbered 6491
("Law") has entered into force as of
June 11, 2013. The Law has repealed the old Petroleum Law numbered
6326 ("Repealed Law") which was in
effect for almost sixty years.
The Law has changed the duration of the exploration licenses
which shall be obtained from the General Directorate of Petroleum
Affairs ("General Directorate").
Previously, the duration for the exploration licenses was 4 years
and could only be extended up to 8 years. However, the Law provides
that the exploration licenses are granted for a period of 5 years
for explorations on land and 8 years for explorations at sea. The
exploration licenses can be extended up to 9 years on land and up
to 14 years at sea respectively.
The number or petroleum regions has also changed. Pursuant to
the Repealed Law, there were eighteen petroleum regions. This
number has been reduced to two regions namely land and sea.
The Law also abolished the "state fee", a fee payable
to the state. However, the provision requiring 1/8th of the
petroleum to be paid to the state as the state's share has been
preserved. Calculations of the state share will be based on the
market price of crude oil.
One of the most important changes brought by the Law is to
remove the monopoly of Türkiye Petrolleri Anonim
Ortaklığı ("TPAO") over
the petroleum market under the Law. The market is now open to all
public and private entities.
The Law requires operation licenses to be obtained for
exploration, production and sale of petroleum. The operation
licenses will be granted by the General Directorate for a period of
The Law also provides certain exemptions (i.e tax and
investment exemptions) to the public and private entities who wish
to engage in the petroleum market. In this respect, import of the
necessary equipment listed under Article 13 of the Law will be
exempt from customs tax, fees and stamp tax.
Finally, no new applications for exploration license shall be
accepted by the General Directorate within the first year
commencing on the date the Law came into force. In other words, new
exploration license applications will need to be filed starting
from June 11, 2014.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
The path that the liberalizing power markets have followed in many countries has common milestones that have been explored in the literature regarding power market liberalization pretty widely and thoroughly.
The principal legislative act governing mining activities in the Republic of Kazakhstan ("RoK") is the RoK Law on Subsoil and Subsoil Use dated 24 June 2010 No. 291-IV (the "Subsoil Law").
Some comments from our readers… “The articles are extremely timely and highly applicable” “I often find critical information not available elsewhere” “As in-house counsel, Mondaq’s service is of great value”
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).