Statoil will launch onshore exploration in Turkey

Baku. 16 May. REPORT/AZ/ Statoil has entered a binding letter agreement into two onshore exploration licenses in Turkey’s European north-west, in the Thrace region, Report informs referring to the Turkish media.

Under this agreement, Statoil will partner Canada-based Valeura Energy in a work programme where the first phase involves the commitment of drilling one exploration well.

“Entry into the north-western part of Turkey is in accordance with our exploration strategy to build a diverse portfolio of low commitment frontier opportunities with impact potential”, Statoil’s senior vice president for exploration activities in the Northern Hemisphere, Erling Vagnes, said.

The exploration phase of the programme will test unconventional gas potential in the deeper parts of the basin. Overall, the exploration licenses cover approximately 540 square kilometres, in proximity to existing infrastructure in a region where gas has been produced since the 1920s.

Meanwhile, Statoil will hold a 50% interest in the Banarli licenses, while Valeura Energy Inc. will keep the remaining 50%. The shallow formations above 2,500 metres will be fully retained by Valeura. Following the earning phase, Statoil will have the option to assume operatorship of the joint venture, Valeura Energy informed.

The agreement is pending government approval, which is expected by the end of September 2016.