Fatih Dönmez, Minister of Energy and Natural Resources, New dawnanswered questions from.
ALL THE NATURAL GAS IN THE HOUSE WILL COME FROM THE BLACK SEA
– When will the production of natural gas in the Black Sea reach 40 million cubic meters?
Our oil imports are almost 92% of our total needs. We have an 8 percent production. Worse on natural gas. We have 1% production. We import 99% of that. But with this discovery in the Black Sea, we will begin to reverse those rates. In the first phase, we will complete 10 wells. Our goal is a daily production of 10 million cubic meters from 10 wells. We will complete 10 to 40 wells in the next 4 years. Thus, we will reach 40 million cubic meters. When it reaches maximum production, we will be able to meet almost all the natural gas needs of households in Turkey with our own gas. There is a lot of serious work both at sea and on land. It currently employs 5,200 people. We currently have 34 ships in the Black Sea, 3 of which are drilling. That number will reach 45 in July-August. We consider Filyos as a coastal logistics center.
They said, ‘Turkey cannot extract this gas’. How much of this work can we do for ourselves?
It’s impossible to do everything with local resources here. The US doesn’t do everything with domestic means. The industry is global. Some services have become the specialization of certain companies. The ability to extract oil on land is more advanced. Because here the human being has 100 years of experience. The real problem is in the sea, in the sea and in the deep sea. At a depth of several thousand meters. We are in contact with engineers and suppliers. But it doesn’t start from scratch. We started building our own onshore drilling rig. We are receiving some piping related supplies from domestic companies.
WE DO BUSINESS ON THE CONDITION OF ‘PRODUCTION IN TURKEY’
As we do and learn here, we will be placing many products. Some of them will be domestic design, others will be produced in Turkey. We say ‘come and produce here’, ‘transfer technology’ when we finish some work. We reversed the brain drain. We included more than 100 people currently working abroad in this project. Now they started working in Turkey. Our friends who have managed many projects on a global scale are now also managing this project. These are Turkish citizens. They also make sacrifices. We don’t have the opportunity to pay as much as abroad, but they see it as a moral debt to Turkey with enthusiasm. It is extremely gratifying for us.
IF NECESSARY, WE INVEST MAN IN THE FACTORY
– Is the engineering approach completely under our control? Are you walking under our direction?
Of course, ‘can’t they can’t’. There is no such thing. So, I hope time will confirm. Let me also say this. Such a project will not be completed before 6-7 years under normal conditions. We will now have started the first production in a period of 2.5 years. In other words, we are currently managing 6,000 work items together in the supply. Sometimes we invest people in the factory to buy some equipment so that the material doesn’t go elsewhere. These kinds of situations happen.
– We have a limit like 2023. Besides your energy policy, maybe you don’t need to take other political measures on the tax side?
Currently, it is not a very controllable area, as we also depend on external energy prices. As our government, we have provided significant support both last year and this year, especially not to reflect these excessive increases in households. Last year, that number was about 20 billion in electricity. And as you know, you didn’t receive excise tax on fuel. When we left the fuel aside, there was support of 100 billion. This year, it will be more than 200 billion lire in electricity and gas. Support fees remain more or less the same. The treasury also has a load to carry. When we buy our own gas next year, we see that it is cheaper than prices abroad. So maybe we can take a positive approach.
BEST LINE TURKEY
– Will our Foreign Minister have an energy theme during his visit to Israel?
This visit was thought to be the first time we would go with Mevlüt Bey. It is envisaged that the first dialogues will be at the level of the Ministers of Foreign Affairs and then steps will be taken on energy and other issues. We are trying to determine a timetable that is right for us and for them. The first contacts were at the level of Foreign Affairs, but one of the topics discussed there will undoubtedly be the steps to be taken in the area of energy. Israeli gas is currently going abroad via Egypt. The shortest and cheapest line for Israeli gas is Turkey. Turkey is close as a route and strong in terms of infrastructure. Several trillion cubic meters of discoveries were announced by Israel there. There are also international companies involved. He needs to take this job seriously. I think a common way can be found in terms of mutual respect and benefit.
75 PERCENT OF CONSUMPTION IS IN THE SECOND STAGE
– Anyone who drives a 100,000 lire car uses the subsidized gasoline you provide, and anyone who gets into a 500,000 lire car benefits from that subsidy. Those who live by the sea or in the favela pay the same subsidy for natural gas. Is it possible to adjust these subsidies according to the income situation?
This is extremely important. Earlier this year, we thought of exactly what you said when we switched to stepping in electricity. An amount with higher income consumes more. So in the second stage, we have some real costs, but we have the statistics of the middle and low-income families in the part that we call the first stage, which started with 150 kilowatt-hours and now continues with 240 kilowatt-hours. We can see it. We think it would be right to act from here. Currently, the rate of those who enter the first level is 75%, that is, if the 25% share exceeds approximately 300 lire, it becomes the second level.
– Could this mean savings?
Yes it’s pretty. We have seen that we have created a conscience in our citizens. Everyone is flaunting their behavior towards savings, which they neglected yesterday. By using it more carefully, we will contribute to both your own budgets and the state budget. Because we import this energy from abroad with foreign currency. We sell to our citizens in TL, but we buy oil, natural gas and coal from abroad in foreign currency.
The sale of Russian natural gas to third countries is subject to permission
– Is there a problem with investing in Akkuyu?
In Akkuyu, they connected most of the materials for the first unit next year. Because the project has already started. It comes on schedule. There are also units 2, 3 and 4. They will come one year apart.
– Can Turkey buy and sell Russian gas while EU sanctions continue?
Not. Now friends, when you buy a product, if the seller doesn’t give you the right to export it, you can’t sell it again. In our contracts, matters related to re-export are subject to permission only. Until now, we have consumed the gas we buy on the domestic market. For him, such a thing never happened. Whether or not this will happen after today, it is not correct to make an assessment on this matter today.
– We see that the European countries that shelved the Green Deal brought new projects to the agenda, including coal and nuclear power plants. How does Turkey plan its energy composition in the short, medium and long term?
Now, of course, we are in favor of a balanced portfolio with diversity of resources. First, we need to use renewable resources as much as possible. Currently, the share of renewable energies in the installed power of electricity is 54%. So let me just say that domestic resources, renewable resources is also a domestic resource. We see wind and sun as domestic resources at the same time. There is also a 10% stake. So we are talking about 64-65% domestic and renewable resources. So these are the priorities of our policies.
THE GOOD WILL OF THE NEW DISCOVERY WILL COME FROM ADANA
– Recently, both old wells are drilled and there are new drillings. Any good news soon?
Regarding oil, TPAO has increased our daily production from 41,000 to 61,000 barrels in the last 4-5 years. So there is a 50% increase, but is it enough? Private sector production is around 15,000 barrels. We produce 8% of our consumption. Our security units are now cleaning up and delivering to us in many areas that we were unable to enter and investigate due to security issues in the past. We have drilled two producing wells in the field we call ‘Campo Martyr Esma Çevik’ in Gabar, whose daily production is between 2,000 and 3,000 barrels. There are wells that were closed in the past. We re-evaluated these wells. We have some in production. Now we are moving to Central Anatolia and Western Anatolia. We will soon announce the discovery of oil in Adana.