TotalEnergies has signed a preliminary agreement with Turkish state-owned energy company TPAO to explore the country's Black Sea waters for hydrocarbons, the French oil major said on Monday, nearly three years after pulling out of a gas exploration project in the sea's Bulgarian waters.
The agreement, first announced by Turkey's energy minister last month, provides a framework for technical collaboration and possible joint future exploration opportunities.
"We are pleased to launch this cooperation...to evaluate exploration opportunities in the Black Sea region and internationally on a mutually beneficial basis," said Nicola Mavilla, Total's senior vice-president for exploration, in a statement.
European countries have shown growing interest in the Black Sea after losing access to Russian oil and gas supplies in the wake of the Ukraine war in 2022 and now facing disruption from the war in Iran.
Neptun Deep, one of the European Union's most significant discoveries with an estimated 100 billion cubic metres of recoverable gas, is located in Romania's area of the Black Sea and will start production next year.
Last year, Britain's Shell signed a contract to explore in Bulgarian waters. TotalEnergies had also previously been active in Bulgaria's part of the Black Sea before ceding its stake in the Han Asparuh project to local player OMV Petrom ROSNP.BX in late 2023, as the European Union pursued its Green Deal policy of phasing out oil and gas in favour of renewables.
Turkish Energy Minister Alparslan Bayraktar said on social media platform X on Monday that the accord was part of Turkey's goal of becoming a regional energy hub, adding that Ankara wanted to achieve full energy independence.
Turkey, which is not an EU member, is pushing to develop its domestic resources via international partnerships, including with U.S. major Exxon, to boost security of supply and become a regional exporter.
TotalEnergies will next year begin supplying Botas, another Turkish state-backed energy firm, with liquefied natural gas supplies under a 10-year contract.
The French major also owns a 50% stake in Ronesans Enerji — owned by Turkish tycoon Erman Ilicak — which holds 166MW of hydroelectric assets and a pipeline of future wind, solar and battery projects.
(Reuters)
Subscribe
