Privatization of the Turkish Petroleum Corporation

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Turkish Petroleum Corporation (TPAO), which is currently a national oil company involved in upstream sector (exploration, drilling, well completion and production) was first founded in 1954 by the Law No. 6357 for the purposes of hydrocarbon discovery, drilling, production, refiner and marketing activities. The registered capital of the TPAO is 3 Billion Turkish Liras.

The Minister of Energy, Taner Yıldız, has announced during the Bosporus Energy Summit that “they have prepared a legislative proposal on the privatization of TPAO to be sent to Cabinet of Ministers”.

Privatization has many impacts on developing economies. Other than advantages such as reducing the net debt and relaxing the fiscal constraints, it is also pursued for more efficient operation of corporations and for encouraging foreign direct investments.

Energy sector in Turkey is continuously growing. According to Ministry of Energy and Natural Resources’ data, 1086 oil well is planned to be drilled during 2015-2019 for petroleum and natural gas discovery. TPAO’s privatization will certainly affect all players involved in Energy sector in Turkey and the Country’s Economy in general.

(Source: http://www.dunya.com/mobi/news_detail.php?id=247173; http://www.tpao.gov.tr/; http://www.imf.org/external/pubs/nft/op/194/; http://www.dunya.com/mobi/news_detail.php?id=247196 )

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