Turkey declines energy giant cash offer for Sakarya gas field: Sabah

By Al Mayadeen English
Source: Agencies
15 Jan 2023 16:01
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With another gas field discovered alongside Sakarya, offshore gas reserves amount to 710 billion cubic meters, which would equal around $1 trillion on the global market.

The Turkish Fatih gas field exploration ship (Foreign Brief)

Citing sources, Turkish newspaper Sabah reported on Sunday that Turkey rejected an offer by an unnamed global energy giant to develop a massive gas field in the Black Sea, which comes after the country discovered a gas field in the Black Sea in 2020 - named Sakarya - with reserves estimated at 540 billion cubic meters.

With another gas field discovered alongside Sakarya, offshore gas reserves amount to 710 billion cubic meters which would equal around $1 trillion on the global market.

Sabah also reported that several countries such as the UK, US, and Canada have already shown interest in cooperation in the gas field. However, one of the globe's energy giants, which "dominates the global energy sector," offered half of the market value in cash in return for the current discovery.

According to the newspaper, the energy giant was seeking to extract and sell the natural gas found in the Black Sea in collaboration with Turkey, but energy management officials relayed to the newspaper that the offer was declined. The reason given was that Turkey assured it was able and empowered enough to extract and sell the gas independently.

The largest in Europe

In January 2022, Energy Minister Fatih Donmez stated that Turkey intends to construct an energy hub in Filyos' port, and informed reporters that the industrial complex might be operational in the first quarter of 2023.

Anadolu, Turkey's state news agency, cited him as saying, "After this facility has been connected to the grid, Black Sea gas will be used all across Turkey. The people of Turkey and the state will both benefit from it."

According to the energy minister, the processing plant's initial operational capacity would be 10 million cubic meters per day, increasing to 40 million cubic meters per day over time. He predicted that the industrial zone will grow to be the largest in Europe.

Approximately, a $10 billion investment plan is put forward by Turkey for the operation in its exclusive Black Sea economic zone.

According to Hurriyet daily, Donmez said "When we start full production we will be using our own gas to cover 25-30% of our total needs. Our dependence on imports of natural gas from abroad will drop to 70%."

In December, Erdogan announced that a new gas field with a reserve of 58 billion cubic meters has been discovered in the Caycuma-1 field in the Black Sea.

"Our drilling vessel Fatih has discovered 58 billion cubic meters of natural gas reserves at a depth of 3,023 meters (9900 feet) under water," Erdogan said in his address to the nation after a cabinet meeting.

Turkey, which has limited oil and gas reserves, relies heavily on imports from Russia, Azerbaijan, and Iran, as well as liquefied natural gas from Qatar, the United States, Nigeria, and Algeria. Last year, it imported 48.1 billion cubic meters of gas, up 6% from the year before, with a third of that coming from Russia.