An early election move by the government? 332 billion in foreign loans on the way

The government has allocated a massive budget of 332 billion 555 million lira to the Turkish Petroleum Corporation (TPAO) to accelerate natural gas production in the Black Sea. However, a large portion of this resource will be provided through loans obtained from abroad. This situation has been interpreted by some circles as the AKP preparing for upcoming elections with a "domestic and national" move.

The majority of the total appropriation will be used for operations to be carried out in the Sakarya natural gas field in the Black Sea. Of the 211 billion 389 million lira budget, 195.7 billion lira will be covered by loans obtained from abroad. This investment will cover many activities, such as the completion of 39 wells, exploration drilling at a depth of 7,620 meters, and large-scale geophysical surveys.

INVESTMENT PLANNING FOR PHASE-2 AND PHASE-3 FIELDS

The second and third phases of the investments made in the Sakarya natural gas field are also noteworthy. An imported loan of 69.9 billion lira has been allocated for the development of the Sakarya Phase-2 field. With this investment, it is projected that a total investment of 71.1 billion lira will be made by using 1.2 billion lira of domestic resources. For the Phase-3 field, 125.8 billion lira in loans has been set aside. With a domestic contribution of approximately 5 billion lira for this field, the total investment amount will reach 130.3 billion lira.

107.2 BILLION LIRA FOR EXPLORATION AND PRODUCTION ACTIVITIES

The remaining part of the budget allocated to TPAO will be directed toward oil and natural gas exploration and production activities. Of this 107.2 billion lira budget, 87 billion lira will be used for exploration drilling, surveys, and the completion of 215 wells in 22 different provinces. The remaining 18.5 billion lira will be spent on production activities in 12 provinces. In this context, the production of 273 million cubic meters of natural gas and 47.5 million barrels of crude oil is targeted. Additionally, the completion of 77 wells and 164 thousand meters of production drilling is planned.

THE LARGE SHARE OF IMPORTED LOANS

It is stated that the large share in these projects will be financed by imported loans. This move, which is of critical importance for Turkey's energy independence, is evaluated not only for its high use of foreign resources but also as the AKP focusing on "domestic and national" energy production targets ahead of an early election expected to be held in 2026 or 2027.

News Source: 12punto