TURKEY - TPAO & Its Fields.

TPAO has more than 45 oilfields producing in four south-eastern districts - Siirt, Diyarbakir, Gaziantep and Adana. From 1994 to mid-1998, the state-owned company found about 2-3 fields every year.

TPAO was established in 1954, when it took over from the State Minerals Exploration

From the second half of 1998 TPAO's exploration efforts in Turkey have not resulted in oil discoveries of consequence. Since then, its production has exceeded its reserves discoveries by far. In 1996, TPAO added 18 new wells to its oil production system and their output during that year totalled over 1.33 million barrels. They included the Bozova structure in the Adiyaman axis of fields, which the company discovered earlier in that year. In 1997, the company added 12 new wells which during that year produced almost 900,000 barrels. During those two years, over 20 old wells were abandoned. Now, the number of active wells in TPAO's production system is about 627, compared to about 620 in early 1998 and 509 by end-1995. In 1996 and 1997, TPAO drilled more than 45 exploration and appraisal wells with a cumulative depth of more than 55,000 metres. The company made five oil and gas discoveries during those two years.

                      MAIN OIL & GAS FIELDS IN TURKEY

Field     Operator    Dscvry  Nature    API      Wells  Rsrvoir  Depth (ft)

Petroleum District 10 - Siirt
 Raman      TPAO       1945     O    18.8 deg.     8      UC    4,500
 Garzan     TPAO       1951     O    25 deg.       1      UC    4,700
 Germik     TPAO       1958     O    19 deg.      10      UC    6,500
 Kurtalan   TPAO       1961     O    33.2 deg.     1      UC    5,750
 Magrip     TPAO       1961     O    18.4 deg.    10      UC    5,700
 Raman W.   TPAO       1961     O    13.3 deg.    96      UC    4,200
 Silivanka  TPAO       1962     O    21-25 deg.    8      UC    8,200
 Celikli    TPAO       1964     O    35.2 deg.    11      UC    10,500
 Selmo    (Mobil) TPAO 1964     O    34.4 deg.    20      Pa    5,800
 Malahermo  TPAO       1965     O    33           susp.   UC    n.a.
 Dodan      TPAO       1965     O    36 deg.      susp.   UC    n.a.
 Magrip N.  TPAO       1969     O    27           susp.   UC    n.a.
 Yolacan    TPAO       1970     O    19 deg.      n.a.    UC    n.a.
 Sezgin     TPAO       1970     O    17 deg.      susp.   UC    5,600
 Oyuktas    TPAO       1972     O    31 deg.      susp.   UC    7,600
 Yasince    Aladdin    1974     O    29 deg.      n.a.    UC    n.a.
 Molla      Aladdin    1974     O    n.a.         susp.   MC    n.a.
 Camurlu    TPAO       1975     O/G  12.2 deg.    20      T/UC  5,600
 Ikiztepe   TPAO       1976     O    11.3 deg.    susp.   UC    4,900
 Beycayir   TPAO       1976     O    26.1 deg.     1      UC    7,700
 Selmo W.   Mobil)TPAO 1981     O    34 deg.      n.a.    Pa    6,000
 Dincer S.  TPAO       1981     O/G  16.7 deg.    10      UC    5,350
 Kozluca W. TPAO       1985     O    12 deg.      24      UC    5,000

Nature: O = Oil; G = Gas
Age of Reservoir: L = Lower; M = Middle; U = Upper
                C = Cretaceous; Co = Coniacian; J = Jurassic; T = Triassic;
               Mi = Miocene; P = Paleozoic; Pa = Paleocene; S = Santonian

Field     Operator        Dscvry  Nature    API      Wells   Rsrvoir
Depth(ft)

District 11 - Diyarbakir
 Kayakoy    (Shell) Perenco  1961    O    38.2 deg.    27     UC      n.a.
 Kayakoy S.  TPAO            1961    O    30.4 deg.     4     T/Pa    8,600
 Kayakoy W. (Shell) Perenco  1961    O    34.7 deg.    29     T/Pa    n.a.
 Kurkan     (Shell) Perenco  1963    O    31.4 deg.    35     UC      n.a.
 Beykan     (Shell) Perenco  1964    O    33.2 deg.    48     UC      4,800
 Sahaban    (Shell) Perenco  1966    O    33.2 deg.    13     UC      n.a.
 Kurkan S.  (Shell) Perenco  1967    O    34.5 deg.    10     UC      n.a.
 Malatepe   (Shell) Perenco  1970    O    32.7 deg.    15     UC      n.a.
 Katin      (Shell) Perenco  1971    O    29.5 deg.     8     UC      n.a.
 Malatepe W.(Shell) Perenco  1972    O    33.9 deg.    susp.  UC      n.a.
 Kock       (Shell) Perenco  1972    O    27.4 deg.    n.a.   UC      n.a.
 Barbes     (Shell) Perenco  1972    O    30 deg.      22     UC      n.a.
 Yatir      (Shell) Perenco  1973    O    31.1 deg.    susp.  UC      n.a.
 Saricak    TPAO             1973    O    31.5 deg.     5     UC      5,250
 Saricak S. TPAO             1973    O    31.5 deg.    13     UC      5,250
 Yenikoy    TPAO             1973    O    31.3 deg.    20     UC      6,400
 Yenikoy E. (Shell) Perenco  1973    O    31.3 deg.     2     UC      n.a.
 Yatir E.   (Shell) Perenco  1974    O    30.9 deg.    11     UC      n.a.
 Cabantepe  (Shell) Perenco  1975    O    32.8 deg.    n.a.   UC      n.a.
 Sahaban S.  TPAO            1978    O    34.5 deg.     2     UC      n.a.
 Sebyan     (Shell) Perenco  1973    O    33.4 deg.    n.a.   UC      n.a.
 Sivritepe   TPAO            1977    O    33.4 deg.     1     UC      8,200
 Sincan     (Shell) Perenco  1980    O    31.2 deg.     9     UC      n.a.
 Mehmetdere  TPAO            1982    O    31 deg.       1     UC      6,700
 Kartaltepe  TPAO            1982    O    31 deg.       3     UC      6,550
 Alcik       TPAO            1983    O    34 deg.       1     UC      6,500
 Kervan      (Shell) Perenco 1983    O    30 deg.      n.a.   UC      n.a.
 Firat West  TPAO            1984-5  O    n.a.         n.a.   Mi/UC   n.a.
 Bectar      (Shell) Perenco 1985    O    n.a.         n.a.   UC      n.a.

District 12 - Gaziantep
 Kahta       Aladdin         1958    O    11.5 deg.    25     Co/S    3,500
 Piyanko     (Shell)Perenco  1968    O    35.5 deg.     3     UC      n.a.
 Adiyaman    TPAO            1971    O    27.6 deg.     8     UC      5,800
 Adiyaman N. TPAO            1977    O    20.4 deg.    susp.  UC      9,500
 Adiyaman S. TPAO            1977    O    32 deg.      susp.  UC      5,000
 Bolukyala   TPAO            1977    O    35.3 deg.    susp.  UC     10,300
 Cemberlites TPAO            1983    O    30.5 deg.    22     MC      6,500
 Kahta W.    Aladdin         1985    O    n.a.         n.a.   Co/S    n.a.
 Kucukpirin  TPAO            1985    O    n.a.         n.a.   MC      n.a.
 Cukurtas    TPAO            1985    O    36 deg.       1     UC     10,000
 Akpinar     TPAO            1985    O    31.6 deg.     4     UC     10,500

District 14 - Adana Basin
 Bulgurdag  (Mobil) TPAO     1960    O    37.9 deg.     2     M/P     4,300

Age of Reservoir: L = Lower; M = Middle; U = Upper
C = Cretaceous; Co = Coniacian; J = Jurassic; T = Triassic;
Mi =  Miocene; P = Paleozoic; Pa = Paleocene; S = Santonian

TPAO holds about 180 concessions in Turkey. Out of these, 43 are production areas, of which two are joint ventures with Shell and another two are joint ventures with Atlantic Richfield (Arco) of the US. In the exploration areas, TPAO is trying harder to find natural gas near the oilfields. The gas is needed for reinjection into old oilfields where reservoir pressure has declined considerably in recent years.

TPAO in 1988 discovered a non-associated gas field in the Sea of Marmara. Arco in early May 1997 found a major offshore field of non-associated gas in the southern section of the Black Sea. Thanks to these discoveries, gas production has risen steadily in recent years, from 181.5 MCM per annum in 1995 to 204 MCM in 1996 and to 250 MCM in 1998, with the coming on stream of Arco's offshore field (see profile on following pages). Gas production in 1999 rose to 300 MCM, and this is expected to be the level for 2000.

In recent years TPAO has been trying to start exploring for oil and gas along Turkey's Mediterranean coast. But it has been constrained by complex territorial disputes over the Aegean Sea and islands between Turkey and Greece. BP Amoco in 2000 is to begin exploration drilling on a promising Mediterranean block off Mersin and Hatay Province, long the subject of a territorial claim by Syria. BP Amoco, holding the block in partnership with TPAO with Amoco having acquired it in the early 1990s, did a seismic survey in the area in 1998. BP Amoco also has an offshore Black Sea block on which it has shot 780 km of 2D seismic.

Apart from operating its fields, TPAO is the non-operating partner of the other oil producers in this country. The state corporation has had several oil discoveries around its Adiyaman axis of fields, in Gaziantep district, since late 1989 (see tables of fields in OMT). TPAO developed these discoveries quickly and its oil production rose by more than 12,000 b/d in 1991. But the increase was offset by a decline in many of its other fields in the subsequent years. The decline continues, despite the fact that gas reinjection systems have been installed in some of them.

The Raman group of connected fields in Siirt remain the biggest oil producers for TPAO. The first one, Raman, was found in 1945. It produces 18.8 deg. API oil with 4.1% sulphur from an Upper Cretaceous formation at a depth of 4,500 feet. Raman West (Bati Raman), found in 1961, is the largest structure in Turkey producing 13.3 deg. API oil with 5.7% sulphur from an Upper Cretaceous reservoir at a depth of 4,200 feet. Oil in place at Raman West, defined as "ultimately recoverable", accounts for most of the 2 bn barrels estimated in this area by TPAO. But because it is heavy, the oil cannot be recovered in view of a permeability barrier. Only a small part is recoverable under a current EOR system involving CO2 flooding.

Germik, found in 1958, was TPAO's first discovery and the third oil find in Turkey. The field lies to the north-west of Garzan, not far from Raman. It is on trend with Garzan. But it is small, producing only 98 b/d, compared with 120 b/d in 1998, 150 b/d in the first quarter of 1996 and 180 b/d in 1988. The oil is 19 deg. API with 2.8% sulphur.

Ikiztepe, discovered in 1976 by TPAO, is one of the Siirt fields extending into Syria. Its oil being 11.3 deg. API with 4% sulphur. Ikiztepe's extension on the Syrian side is known as Said field, with both sides producing from an Upper Cretaceous reservoir at a depth of 4,900 feet. Ikiztepe was closed in 1989 because of a rapid fall in reservoir pressure. By end-1988, the field had produced 88,051 barrels.

Later Japan National Oil Corp. (JNOC) provided TPAO with assistance for an EOR system at the field. But work there and in other fields close to the Syrian border was suspended occasionally, mainly in late 1993, due to attacks by the Kurdish PKK.

PKK attacks in 1993 also affected the other operators in most of Turkey's south-east and caused Mobil to sell its interests in small producing fields to TPAO. There were such attacks in the subsequent years, despite major offensives against the PKK by the Turkish armed forces. After the capture of PKK leader Abdullah Ocalan in 1999 the Kurdish rebel movement declared a unilateral halt to violence.