Turkish Petroleum Asset Transfer to Sister Co. Complete

Turkish Petroleum (TP) finalized the transfer of some of its assets in oil field service operations and equipment in its existing domestic oil and gas wells to Turkish Petroleum International Company (TPIC), TP announced on Friday.

TP said that the process was finalized in accordance with the cabinet decree agreed on June 12 and also with the Turkish Ministry of Energy and Natural Resources' National Energy Strategy.

TP CEO and President Melih Han Bilgin and TPIC CEO and President Ahmet Turkoglu signed the take-over protocol on Nov. 30 in the company's headquarters in Ankara.

A committee made up of officials from the Turkish Ministry of Energy and Natural Resources coordinated the take-over process and working protocol between the two companies, TP said.

The decision is part of Turkey's Ministry of Energy and Natural Resources strategy to transform TP into an exploration and production (E&P) company and TPIC into an oil services company. The move will enable TP to mitigate oil price fluctuations and enable TPIC to become global in its operations.

TP also underlined that the two companies agreed on many aspects including the take-over of TPIC's domestic and international exploration and operating licenses to TP and the continuation of TP's personnel to work under TP.

"With the help of the take-over agreement, TP will focus on its main area of activity, which is exploration and production," the company concluded.

TPIC was established in 1988 as a subsidiary of TP, while the company's ownership was transferred to Turkey's state-owned pipeline company BOTAS in 2013.

The company has carried out exploration and production activities, oil field services, oil trading and distribution in the Middle East, North Africa, Caucasus, Central and South Asia and South America countries.

A cabinet decree in Turkey's Official Gazette on June 20 noted that the transfer of the services related assets to TPIC would be transferred free of charge and based on its registered book value.

It also noted that TPIC's direct domestic and foreign oil exploration and operation licenses ownership and shares in those licenses would be transferred to TP free of charge, including all rights and obligations.

(Anadolu Agency)

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