ÇAĞRILI KONUŞMALAR / KEYNOTES Invited Speeches ... - TPJD

The Petroleum Law/Regulation Systems of Turkey and the World and Its
Importance
Nilüfer Özder Çiftçi
N.V. Turkse Perenco, Ankara
In today’s world, the fierce competition witnessed in petroleum sector can only be coped with a
petroleum policy and financial policy systems having well designed legal basis. The governments
and the petroleum investors may achieve the development goals through long lasting and durable
relations in a comprehensible, stable and reliable legal ground. Energy is the leading factor among
the most important factors that determine a country’s economy, and the basic purpose of all
these efforts is to carry the public welfare to the highest level by increasing the economic strength
of the country. The day by day increase of energy requirement in our country, the global changes
and the liberal market regulations as well as the requirement for determination of the players,
rules, audit processes and the authorities during the process from exploration and production of
Petroleum until it reaches to the consumer have revealed the need for introduction of a new legal
regulation. In this context, understanding the legal development of the Petroleum Sector in our
country and in the world is extremely important for comprehending the innovations experienced
and for finding legal solutions to the problems encountered in the sector. The legal basis for
deregulation and liberalization of the petroleum sector in our country was established through
the market Laws. The need may arise for changing the rules of law at various times and in cases
like eliminating the inconveniences arising in practice and organizing the new needs, and also
the legal norms may be changed. However, while changing the Laws and the Regulations, the
new requirements must be met, the existing inconveniences must be eliminated and the existing
legal situation and the stability must not be harmed. The legal regulation related to exploration
and production activities have been ignored, in a sense, while making the energy market
regulations. Many regulations and applications included in the Petroleum Law became invalid
and unenforceable after entry of the market laws into force. This situation has negatively effected
the companies existing in the sector on the subject of making future oriented investments and
on other applications and it was the cause of many problems experienced during the transition
process. Besides that, it has increased the legal risk and created an uncertainty for the local
and/or foreign investors willing to make investments in exploration and production activities.
While, on one hand, trying to create a free market in the energy sector, on the other hand, the
investments of the local and foreign petroleum and natural gas producers that may be players
in these markets must be encouraged and the legal uncertainties and contradictions must be
eliminated. In this regard; legal and financial arrangements of peripheral countries and those of
European Union should be considered at global level and it should be ensured that, on a sound
financial and legal basis, internationally accepted contracts (i.e.; production sharing contracts,
Joint venture contracts, drilling contracts, seismic contracts) are understood and used frequently
by local companies in Turkey. It is out of question that these issues will remarkably contribute to
Turkish Petroleum Sector to become be a strong player in international field.
Keywords: Petroleum Sector, Petroleum Law, Exploration and Production activities
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