Ankara, Turkey. Energy Minister Alparslan Bayraktar said Turkey’s dependence on Middle East oil is at a manageable 10% of total supplies and that there have been no supply problems despite the war involving Iran. He said the conflict has created a crisis in global energy security and that Turkey has taken diversification measures.
Oil exposure and price impact
Bayraktar said Turkey is a major energy importer and a neighbour of Iran, and has taken protective steps to diversify supplies. He said every $1 increase in oil prices adds about $400 million to Turkey’s energy bill.
Natural gas supply from Iran
Bayraktar said there have been no natural gas supply cuts from Iran so far, but that this remained possible. He said there were reports that Iranian natural gas was cut a short while ago, adding that this had not happened to date but could occur later, prompting diversification against related risks.
Planned and recent hydrocarbon agreements
As part of diversification steps, Bayraktar said Turkey planned to sign a hydrocarbon deal with TotalEnergies soon, similar to ones signed with other oil majors.
As part of Ankara’s strategy to expand oil and gas production at home and abroad, state energy firm Turkish Petroleum (TPAO) signed preliminary deals with Exxon and Chevron earlier this year. The company also signed a deal with Shell to explore in Bulgaria’s maritime zone and buy a 33% stake in the Khan Tervel license.
Syria-Iraq-Turkey pipeline discussions
Separately, Bayraktar said connecting the flow of oil from Syria to the Iraq-Turkey crude oil pipeline was on the agenda, and that this had been conveyed to Syrian counterparts.
What do you think Turkey’s next priority should be to reduce energy supply risks?
