topartner on two deep-sea drills in the Black Sea, where the companies will search for oil reserves, if the agreement is approved by Cabinet, Energy and Natural Resources Ministry officials told Today's Zaman. Officials, who wished to remain anonymous, said that Chevron and the TPAO will be 50-50 partners in the two deep-sea drills, one of which has already begun in the "Yassıhöyük 1" area off the northern province of Zonguldak. If, as expected, efforts do prove fruitful and oil is found in the Black Sea, the two companies will have equal rights over all explored potential. If oil is not discovered, then Chevron will absorb the operational costs. One deep-sea drill costs around $250 million. If the agreement gets the green light by Cabinet, Chevron will pay a further $50 billion for an exploration license held by the TPAO, for the "Yassıhöyük 1" area.
An earlier drill off the northern province of Sinop's coast resulted in disappointment after the TPAO and its partners, Brazilian Petrobras and American Exxon Mobil, failed to find oil there. The TPAO believes that the Black Sea has some 10 billion barrels of oil and 3 billion cubic meters of natural gas reserves. Following the failed efforts off Sinop's coast, the TPAO initiated works in the "Yassıhöyük 1" area, where it has presently drilled to a depth of 500 meters. It is expected to drill to a depth of 4,000 to 4,500 meters.
Turkey aims to be self-sufficient -- regarding its oil and gas demands -- by 2023, the centennial of the modern republic. As such, the Turkish state values exploration of the Black Sea. The same Energy and Natural Resources Ministry officials told Today's Zaman that they have "high hopes" for the work to be carried out in partnership with Chevron, and the American giant was "enthusiastic" to undertake explorations in the Black Sea.
Chevron produces 2.7 million barrels each day, and had a 2009 turnover of $263 billion, more than the total turnover of Turkey's top 500 companies. According to Fortune magazine, those 500 companies earned $258.6 billion in 2009 revenues.
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