5 - TPAO

1 

Natural resources have great importance for the development 

of civilization in terms of socioeconomics and a sustainable 

growth can only be achieved through environmental values. 

As Turkish Petroleum, our first priority is to prevent the 

corruption of these values due to our activities. We are aware 

that we can provide economic balance through using our 

sources effectively and we adopt to meet every condition 

to protect the environment during our oil exploration and 

production activities as a company policy.

...the duty of serving to this nation and country will 

never end. 

Mustafa Kemal Atatürk 

3

contents 

4 

6 

8 

10 

12 

14 

16 

20 

26 

32 

36 

38 

40 

42 

44 

5 highlights 

about us 

organization chart 

message from the president 

board of directors 

general management 

indicators of 2011 

domestic exploration and production activities 

international exploration and production activities 

technology and services 

research center 

occupational safety and environmental protection 

human resources 

district managements 

subsidiaries and associated company 

50 finance

highlights 

Our domestic investments approximately reached to 

600 million USD in 2011, while 

it was 50 million USD in the early 2000s. 

5 

We realized 7 oil field and 6 natural gas field 

discoveries in 2011. 

We are purchasing a seismic research ship in 

2012. 

We signed joint operating agreements with 

Shell for Mediterranean offshore and Southeast onshore. 

As Turkish Petroleum, we have involved in 4 important 

projects in Iraq. 

We signed oil field services 

and production sharing 

agreement with TRNC in 8 

licenses composed of 7 offshore and 1 

onshore licenses. 

We have involved in Trans Anatolia 

Natural Gas Pipeline Project.

about us 

6 

who 

we are? 

what 

we do? 

TPAO, one of the 

pioneer actors of the 

economy, was founded 

in 1954 with the 

responsibility of being 

involved in hydrocarbon 

exploration, drilling, 

production, refinery and 

marketing activities. In 

its 58 years history, it 

has broken new ground 

in oil sector. Turkish 

Petroleum that brought 

17 major institutions 

like PETKİM, TÜPRAŞ, 

PETROL OFİSİ to 

our country, is still 

conducting domestic 

and international 

activities by involving in 

important projects and 

consortia. 

• Exploration, Drilling, Production, 

• Natural Gas Storage, 

• Pipeline Projects, 

• Oil Products Trade and Distribution. 

where we 

operate? 

TPAO was structured as having its headquarters 

in Ankara and also 3 District Managements 

in Batman, Thrace and Adıyaman with 

approximately 5,000 employees throughout 

Turkey and its branch offices abroad. To 

ensure energy supply security of the country, 

TPAO conducts its investments and activities 

also in abroad especially in Caspian Region, 

North Africa and Middle East. In this context, 

we carry out our exploration and production 

activities actively in Azerbaijan, Kazakhstan, 

Libya, Iraq, Turkish Republic of Northern 

Cyprus (TRNC) and Colombia (TPIC). We 

have been continuing to search and negotiate 

for business opportunities in other hydrocarbon 

rich regions such as Russian Federation, 

South America and Middle East.

our values and strategies 

7 

As Turkish Petroleum, we are eager to bequeath a better Turkey to posterity 

by expending our energy independency with qualified man power, rooted 

corporate culture, self-assurance. 

Building Blocks of Our Values 

Merit 

Is our principle of respect to labour, 

Effectiveness and Productivity 

Are our main purposes of investing to 

right business at right time and success 

criteria of economic production and high 

production rate per employee, 

Openness to Change and Innovativeness 

Are our being user of developing technology 

to build tomorrow by learning from past and 

a way of using new production techniques 

effectively and creating our vision according 

to world balance, 

Environmental Awareness 

Is our eagerness of bequeathing a clean 

environment to posterity, 

Share of Responsibility, Knowledge, 

Experience and Authority 

Are our culture in which knowledge gains 

meaning through experience and increases 

by sharing, 

Credibility and Honesty 

Are our philosophies of developing the 

cooperation with our domestic and foreign 

partners by reflecting the sense of trust to 

others. 

Strategies 

To Develop 

• To become a pioneer actor in Eurasia 

and extend international portfolio, 

• To discover our country’s hydrocarbon 

potential, 

• To step up with activities in Aegean and 

Mediterranean following Black Sea, 

• To share the risk by constituting consortia 

with major oil companies, 

Productivity 

• To monitor our operational productivity 

and to develop it, 

• Applying the technological innovations 

gained through consortia, 

Integration 

• To gravitate towards oil exploration with 

unconventional methods, 

• To take part actively in Natural Gas 

Storage and Pipeline projects, 

Employee Development 

• To transform our man power, our most 

valuable capital, to high performance 

individuals so as to keep up with increasing 

competition, developing technology and 

to increase our efficiency.

organization 

chart 

8 

Chairman and President 

Mehmet UYSAL 

Bureau of the Board of Directors 

Secretariat to the President 

Advisor to the President 

Member of the Board 

Yusuf YAZAR 


İsmet SALİHOĞLU 

Department of Exploration 

Ömer ŞAHİNTÜRK 

Vice President 

Murat ALTIPARMAK 


Besim ŞİŞMAN 

Auditing Committee 

Ahmet ASLAN 

Legal Advisory 

Davut İYRAS 

Batman District Management 

Gökhan AKIN 

Department of Drilling 

Hüseyin ÇİLOĞLU 

Department of Information 

Technologies 

Levent ÖZKABAN 

Trakya District Management 

Murat HACIHALİLOĞLU 

Department of 

International Projects 

Tayfun Yener UMUCU 

Offices 

Department of 

Well Completion 

Serdal AZARSIZ 

Department of Strategies 

Memet Ali KAYA

9 


Cumali KINACI 






Ahmet ADANIR 


Yurdal ÖZTAŞ 


Mehmet Sait KİRAZOĞLU 

Department of Production 

Ali TİREK 

Department of Machinery 

Supply&Construction 

Recai GÜNGÖR 

Department of Occupational 

Safety&Environmental Protection 

İrfan MEMİŞOĞLU 

Adıyaman District Management 

Halil Murat DEMİR 

Department of Research Center 

Süleyman ÇALIK 

Board of Searching and 

Development 

Department of Planning& 

Coordination 

Erdal COŞKUN 

Department of Finance 

Fikri NAYIR 

Department of 

Human Resources 

Yahya PEKTAŞ

message from the 

president 

10 

We are excited and aware that 

the successful results that may 

be obtained from the drillings 

in our offshore fields will carry 

both Turkish Petroleum and 

Turkey to “2023 targets”. 

The first economic gas discovery we realized 

in Western Black Sea in 2004 made this 

region the center of interest and exploration 

activities, by also covering the Mediterranean, 

increased year by year. We are excited and 

aware that the successful results that 

may be obtained from the drillings in our 

offshore fields will carry both Turkish 

Petroleum and Turkey to “2023 targets”. 

Departing in 1954 with the mission of 

determining the oil potential of our country 

and producing the hydrocarbon it requires, our 

Corporate carried on performing its activities 

with a great effort in 2011 as in the past years. 

We believe that good results that may 

be obtained from our devoted activities 

carried in line with our establishment 

purpose, will promote our country in world 

ranking in the following decade. 

Our country will likely to spend nearly 450 

billion USD for oil and natural gas exports 

within the following decade and this shows us 

the importance of maintaining the exploration 

and production activities increasingly at home 

and abroad by our Corporate, without any 

delay. Our Corporate will be successful as 

long as it attains a structure to compete 

in international competition environment. 

We accelerated our national and international 

investments through the strategies we 

practiced in the last decade and we intensified 

our activities especially in our offshore fields. 

In the context of our offshore activities, one 

of the targets of our activities is being active 

in Eastern Mediterranean Region. The first 

step for this aim is the Oil Field Services and 

Production Sharing Agreement signed with 

TRNC, covering 7 offshore and 1 onshore 

fields. Our second step is the studies to 

purchase a seismic ship with the latest 

technology that our country needs urgently 

and will put an end our offshore exploration 

dependency on foreign sources. 

In order to contribute the crude oil and natural 

gas supply of our country, we actively conduct 

our activities internationally, especially in 

nearby geography; in Azerbaijan, Iraq, Libya, 

Kazakhstan, Turkish Republic of North 

Cyprus (TRNC) and Colombia. 

Through involving in 4 projects in spite 

of the hard conditions in Iraq, we actively 

continue our existence as the company 

having the maximum number of projects 

in here and we work hard to involve in 

addition projects.

Turkish Petroleum, like all the other oil 

companies, had to suspend its activities in 

Libya because of the political unrest started in 

the early of 2011. We care about to reinitiate 

our activities by the end of September, 2011, 

that suspended in this hard period Libya 

experienced. 

Our Corporate supports the very best 

utilization of the opportunities that our 

geography offers us and involved in Trans 

Anatolia Pipeline Project (TANAP) that will 

transport Azeri gas to Europe through Turkey 

in this context. As we emphasize always, we 

have undertaken another mission of being 

the energy bridge between the countries with 

rich reserves and Europe countries with high 

consumption rate. 

Technology of our sector moves forward at a 

dazzling pace. Our Corporate, following the 

developments in energy sector closely, is 

taking the necessary steps without any delay. 

In order to compete with global companies, 

our Corporate has to renew itself constantly. 

In this era, “Information” and “Communication” 

have become the most important capital of oil 

companies as well as all other companies. 

By assembling all data processes in a 

modern building, a system is being installed 

in our Corporate that will both increase the 

information security and provide easy and 

instant access to the users who needs it. 

with Shell in 2011, to conduct test production 

activities with unconventional methods. 

Turkish Petroleum, that broke new grounds in 

Turkey, conducts its activities to increase the 

capacity of Kuzey Marmara and Değirmenköy 

Natural Gas Storage Facilities up to nearly 3.0 

billion m³ gradually and withdrawal capacity 

to 50 million m³. The activities of increasing 

the storage and withdrawal capacity are 

so crucial for our energy supply security, 

the issue that we emphasize anytime, 

anywhere. 

We believe that a sustainable development 

can only be achieved through environment 

conscience and social responsibility and we 

are aware of our responsibilities about this 

subject. We will continue our activities in the 

framework of environmental friendly policy 

together with both statuary obligations and 

environmental conscious we raised in our 

staff. 

Turkish Petroleum, since its establishment 

in 1954, has been a company that profits 

every year. Both previous and current 

staff of our Corporate value TPAO to 

reach its target and commit themselves 

to TPAO. These are the main components 

of constituting such a great success. I put 

my faith in maintaining this success also 

in the following years. 

11 

With shale gas production method, 

production in USA has increased and the 

gas prices decreased significantly because 

of the competition in here. Together with this 

changeover method, it is expected that gas 

prices in the market will change substantially. 

It is known that our country has significant 

potential for shale gas production. 

Our energy dependency can be decreased 

if shale gas production method would be 

successful. This would both be a great step 

for our supply security and decrease the 

heavy energy bill on our economy. In this 

scope, we signed exploration and production 

agreements with Transatlantic in 2010 and 

Mehmet UYSAL 

Chairman and President

oard of directors 

12 

5 

He graduated from 

İstanbul Technical 

University, Geological 

Engineering 

Department. 

4 

He studied master’s 

degree of Geophysical 

Engineering in Saint 

Louis University. 

Since 2007, He has 

been the President and 

Chairman of TPAO. 

1 

2 3 6

Mehmet UYSAL 

Cumali KINACI 

1Chairman and the President 2 Member of the Board 3 

Yusuf YAZAR 


13 




Engineering 

Department. 










University, Civil 

Engineering. He 

studied master’s 

degree and doctorate 

of Environmental 

Engineering in İstanbul 

Technical University 

Institute of Science. 


been a Member of the 

Board of TPAO and also 

the President of Water 

Management in Ministry 

of Forestry and Water 

Affairs. 

He graduated 

from İstanbul 

State Engineering 

and Architectural 

Academy, Map and 

Cadastre Engineering 

Department. He studied 

master’s degree in 

Boğaziçi University 

Kandilli Observatory 

and Earthquake 

Research Institute 

Geodesy Department. 



Board as Delegate of 

Ministry of Energy and 

Natural Sources and is 

also the President of 

Renewable Energy. 

İsmet SALİHOĞLU 


4 5 6 



Ankara University 

Faculty of Political 

Science. He studied 

master’s degree of 

Economics in Gazi 

University Institute of 

Social Sciences. 


been a Member of 

the Board of TPAO 

as Delegate of 

Treasury and also is 

the Vice President 

in The Ministry of 

Economy Incentive 

Implementation and 

Foreign Investment. 

Member of the Board and 




University, Petroleum 

Engineering 

Department. 


been the Vice President 

and since 2010 He has 


Board. 






University Petroleum 

Engineering. 



Board and the Vice 

President of TPAO.

general management 

14 

Mehmet UYSAL 

Chairman and the President 




Engineering 

Department. 













University, Petroleum 

Engineering 

Department. 



and since 2010 He has 


Board. 






University Petroleum 

Engineering. 



Board and the Vice 

President of TPAO.

15 

Ahmet ADANIR 

The Vice President 



University Faculty of 

Mines. 

Since 2004, He 

has been the Vice 

President of TPAO. 

Yurdal ÖZTAŞ 


He graduated from Ege 

University Geological 

Engineering. He studied 


Petroleum Geology 

in Ankara University 

Institute of Science. 

He had been a Member 

of the Board between 

2007-2010 and since 

2007, He has been the 

Vice President of TPAO. 

Mehmet Sait 

KİRAZOĞLU 



Ankara University 

Faculty of Political 

Science. He studied 


Public Administration 

in Syracuse University 

(Maxwell School) in 

USA. 



of TPAO.

indicators of 2011 

2011 2010 

16 Sales Revenues (million USD) 

Net Profit (million USD) 

Total Current Asset (million USD) 

Total Fixed Assets (million USD) 

Shareholders’ Equity (million USD) 

Short-term Foreign Liabilities (million USD) 

Long-term Foreign Liabilities (million USD) 

Current Ratio (%) 

Cash Ratio (%) 

Financial Leverage Ratio (%) 

3,295 

1,435 

2,740 

4,488 

5,750 

717 

762 

7.34 

3.91 

0.12 

2,851 

1,353 

2,793 

4,214 

5,341 

1,015 

652 

2.75 

1.97 

0.24 

318 

336 

389 

579 

389 

1,353 

2008 

2009 

2008 

2010 

2009 

1,701 

1,435 

2010 

2011 

2011 

Domestic Investments 

Net Profit 

million USD

2011 2010 

Geological Activities 

(km 2 ) 

9,514 

5,566 

Seismic Activities 

2D 

3D 

Onshore (km) 

Offshore (km) 

Onshore (km 2 ) 

Offshore (km 2 ) 

663 

12,300 

1,064 

1,691 

936 

- 

1,315 

562 

17 

Drilling Activities 

Onshore (thousand m) 

Offshore (thousand m) 

186 

13 

167 

14 

Production Activities 

Domestic (million barrel oe) 

International (million barrel oe) 

14.0 

10.3 

14.2 

11.1 

offshore 

seismic 

25,000 km 

20,000 km 

15,000 km 

10,000 km 

5,000 km 

2D 

3D 

7,000 km 2 

6,000 km 2 

5,000 km 2 

4,000 km 2 

3,000 km 2 

2,000 km 2 

1,000 km 2 

0 km 

0 km 2 

2007 

2008 

2009 

2010 

2011 

With our new exploration strategy that we developed in recent years, we intensified our activities 

on offshore fields. In this context, we aimed to initiate drilling activities in our East Mediterranean 

licenses with both our own capital and by forming associations with foreign companies. We 

signed a Joint Operating Agreement covering 3 licenses in Antalya Bay. Our short term goal 

is to reveal the hydrocarbon potential of our offshore areas in the results of the exploration 

activities in Black Sea and Mediterranean and contribute it to the use of our economy.

18 

World population spent 28% more money to purchase goods 

and service in the last decade. This consumption frenzy 

incited the consumption of raw material and energy. If this 

consumption continues with the same pace, 2 planets like 

our earth will be required to sustain the life in 2050.

domestic exploration 

and production activities 

20 

offshore 

seismic 

As Turkish Petroleum, during our exploration, 

drilling and production activities, in order to 

conduct our activities with the principle of 

preventing and/or minimizing the negative 

environmental effects, protecting the 

human and environment health, we conduct 

teamwork in an innovative, functional and 

scientific manner in parallel to our main 

purpose and targets. 

Our aim is to add a meaning to our economic 

effort and investments by protecting the 

ecosystem which is the basis of human life.

In accordance with our vision and mission for 

meeting Turkey’s continuously increasing oil 

and natural gas demand through domestic 

and international sources, we have made a 

boom in our domestic investments by setting 

our new exploration strategy in the recent 

years by extending our activities in unexplored 

basins of Turkey, especially Black Sea and 

Mediterranean offshore. 

With these seismic and geologic activities, 

we considerably managed to progress in 

revealing the hydrocarbon potential of the 

region. 

On the other hand, Joint Operating Agreement 

was signed between Turkish Petroleum and 

Shell on 23.11.2011 covering 3 exploration 

area licenses of Antalya offshore. 

21 

Our domestic investments approximately 

reached to 600 million USD in 2011, while it 

was 50 million USD in the early 2000s. In the 

last decade, we have performed significant 

activities to reveal new oil sources of our 

country. 

From 2004 to 2011, by conducting 64,000 km 

of 2D and 14,000 km² of 3D seismic surveys, 

we have attained substantial information 

about the hydrocarbon potential of the region. 

The first economical natural gas discovery 

made the region limelight of many oil 

companies. 

The drilling of HopaX-1, Sinop-1, Yassıhöyük-1 

and Kastamonu-1 wells were completed 

after the joint exploration activities with BP, 

Petrobras, ExxonMobil and Chevron. We 

have realized the drilling of Sürmene-1/1RE 

well through our own means. 

By being drilling operator in Yassıhöyük-1 

and Sürmene-1/1RE wells, we become one 

of the 12 major global oil companies that can 

handle drilling in ultra-deep waters. 

Our short term goal is; to explore the 

hydrocarbon potential of Black Sea and bring 

it into the economy. 

Meanwhile, we have conducted 20,000 km 

2D and 2,500 km² 3D seismic surveys in 

Mediterranean (İskenderun, Cyprus, Mersin, 

Antalya offshore) from 2005 to 2011. 

Our farm-out activities initiated covering 

Mersin and İskenderun Bays licenses 

following Antalya Bay. 

We are excited and aware of that, the 

successful results that may be obtained from 

the drillings in our offshore areas will carry 

both Turkish Petroleum and Turkey to “2023 

targets”. 

We also carry on conducting our onshore 

exploration activities intensively, especially 

in Thrace, Southeastern Anatolia and Central 

Anatolia. 

We bent on continuing our drilling activities 

without any cease both at home and abroad. 

In 2011, we have performed 198,875 m. 

drilling in 115 wells. With these activities we 

discovered 54 oil, 9 natural gas wells and also 

7 oil, 6 natural gas fields. 

G. Akçakoca-1/1RE and Akçakoca-5 wells 

were drilled under the Western Black Sea 

Exploration and Development Project within 

the scope of TPAO-Petrol Ofisi E&P- 

Tiway Oil Foinavon partnership. We have 

completed the drilling of Sürmene-1/1RE 

ultra deep water through our own means and 

Kastamonu-1 well with Exxonmobil in Black 

Sea in the same year. 

Moreover, production of oil and natural gas 

with unconventional methods like shale gas, 

is still going on.

22 

We carry out our studies for the establishment 

of a competitive, secure, transparent and 

balanced market conditions for all oil 

companies viewing and adopting themselves 

with the integration process of international oil 

companies. 

As Turkish Petroleum, we signed many joint 

exploration and production agreements by 

getting into partnership with international 

oil companies for our oil and natural gas 

exploration activities. 

In this context, 

• Within the framework of TPAO-NVT 

Perenco joint venture agreement covering 

Southeastern Anatolia Region; our production 

activities continue and G.Kırtepe-11 joint 

production well, drilled under our operatorship, 

was completed as oil well. 

• Within the framework of Cendere Field 

Development Project under TPAO-Tiway Oil 

partnership, Cendere-23 well was planned to 

be drilled, studies were initiated. At first stage, 

re-completion activities were carried out in 

Cendere-15, 18 and 20 wells. 

• Within the framework of Thrace Basin 

Joint Operating Agreement between TPAO- 

Amity Oil, natural gas and condensate 

production continue. Exploration activities 

in these licenses are ongoing. Pelit-2, 3, 

D-Beyciler-H1, Yenibağ-1 and Kumdere-1 

wells are completed with gas well. 

• Within the scope of Memorandum of 

Understanding signed between TPAO- 

Transatlantic and in order to determine the 

production potential from unconventional 

reservoirs of Thrace Basin and Southeastern 

Anatolia, re-entry operations were conducted 

in Kaynarca-1 well. Following re-entry 

operations in Kepirtepe-1 well, 3 rd level 

hydrofracking was conducted in Mezardere 

Formation. 

• Within the framework of Western Black 

Sea Exploration and Development Project 

under TPAO-Petrol Ofisi E&P-Tiway Oil- 

Foinavon partnership, we continued natural 

gas production in Ayazlı and Akkaya Fields. 

We started production activities by completing 

Akçakoca-5 well on 14.10.2011 in addition to 

the Akçakoca-3 and 4 wells drilled in the past 

years. 

In this context, double-deck Akçakoca 

Platform that has 2.1 million m³ production 

capacity in Western Black Sea was put 

into use. Daily production of 9 wells, from 3 

wells of mentioned platform and 6 wells from 

Akkaya and Ayazlı Platforms, was nearly 

500,000 sm³/day. 

• Within the framework of Middle and Western 

Black Sea Project under TPAO-Petrobras- 

Exxonmobil partnership, we signed Joint 

Exploration and Operating Agreement with 

Petrobras on 17.08.2006 for Sinop-Ayancık- 

Çarşamba sub-blocks. 

Exxonmobil became the partner to the 

agreement by purchasing 25% share of 

Petrobras on 11.01.2010. In the scope of the 

agreement, we realized the drilling of Sinop-1 

well with Leiv Eirikson platform under the 

operatorship of Petrobras. 

• Within the framework of Middle and Western 

Black Sea Project under TPAO-Exxonmobil 

partnership, after the evaluation in 3921 no. 

license, we completed Kastamonu-1 well 

drilling with Deep Water Champion Drill Ship 

on 20.09.2011 as dry well with gas show. 

• Within the framework of joint project between 

TPAO-Chevron Karadeniz B.V. the drilling 

of Yassıhöyük-1 well was completed in the 

same year under the operatorship of TPAO.

• TPAO and Shell signed Joint Operating 

Agreements on 23.11.2011 to produce by 

unconventional methods in 3 exploration 

licenses in Mediterranean Region Antalya 

offshore and Southeastern Anatolia. 

23 

Crude Oil and Natural Gas Production 

In 2011, TPAO produced 12.1 million barrels 

of crude oil from its fields, which constituted 

74% of the total crude oil production of Turkey. 

71% of our total oil production is from Batman 

Region, 28% is from Adıyaman Region and 

1% is from Thrace Region. 

The total number of production wells reached 

to 1,195 by the end of 2011 with the addition 

of 51 new and 11 re-completed wells and 

abandonment of 3 wells. 

Serious amount of water was produced from 

our oil fields as well as oil. In 2011, 106 million 

barrels of produced water was injected into 

safe zones in different fields by 87 waste 

water injection wells. 

Within its policy of keeping the production 

at the maximum level, we have continued 

our domestic reserve development and 

production activities in 2011. Production 

problems in heavy reservoir require special 

technical applications. 

In 2011, our total natural gas production was 

317.6 million sm³. 97% of this gas production 

is from Thrace Region, 2% is from Batman 

Region and 1% is from Adıyaman Region. 

The oil equivalent of the gas output is 1.9 

million barrels. 

Thus, TPAO’s cumulative hydrocarbon 

production reached to 14.0 million barrels in 

2011. 

To prevent the decline in production and to 

evaluate the current production potential, 

several reservoir studies were performed.

24 

A first in Turkey; 

Natural Gas Storage Facilities 

Kuzey Marmara and Değirmenköy 

Underground Natural Gas Storage Facilities 

were commissioned in 2007. It had 1.6 billion 

sm³ capacity and this was increased to 2.66 

billion sm³ in 2010. We continue our studies 

in order to increase this capacity to nearly 3.0 

billion sm³ and daily withdrawal to 50 million 

m³. 

The project was planned in 3 phases. 

The investments planned within the first 

phase were completed and pipeline was 

commissioned. 

In the second phase, in order to process 

the natural gas stored in Değirmenköy in a 

different facility and to transmit it into the main 

pipeline of BOTAŞ, it is planned to increase 

the capacity from 2.66 billion sm³ to nearly 

3.0 billion sm³ by establishing an additional 

withdrawal facility with minimum 10 million m³ 

daily withdrawal capacity. 

barrels, 70.4 million barrels of this production 

is the additional oil produced by means of the 

project by the end of 2011. 

In 2011, 417 million m³ CO 2 was injected, 

303 million m³ of this was re-produced and 

275 million m³ of this produced gas was reinjected 

into the reservoir. 

NaOH augmented water injection was begun 

from 4 injectors in order to see the effect 

of chemicals to increase the efficiency of 

Water Alternating Gas (WAG) application. 

105 thousand barrels of chemically enriched 

water were injected. 

In addition to this, 11 vertical and 2 horizontal 

infill wells drillings were completed. 

Drillings of 2 steam injector, 3 producer and 1 

observation wells for the Steam Injection Pilot 

Application were completed. Steam generator 

and all auxiliary units for the application were 

purchased and construction was completed 

substantially. 

In the context of project, EIA acceptance 

certificate was attained, detail engineering 

activities continue. 

In the third phase, it is planned to increase 

the withdrawal capacity with the additional 

16 directional well drilled from the sea to the 

Kuzey Marmara reservoirs and also planned 

to establish a surface facility with minimum 

withdrawal capacity of 25 million m³/day next 

to the current natural gas storage facilities. 

With the completion of this phase by the end 

of 2016, our total withdrawal capacity will 

reach to 50 million m³/day. 

Production Enhancement Projects 

Batı Raman Field Enhanced Oil 

Recovery Project 

In the context of the project that has been 

conducted since 1986, Batı Raman’s 

recovered cumulative oil is 106.3 million 

Steam injection will be commenced in mid- 

2012 following the completion of the wells 

and start-up of the facilities. 

Raman Field Production Enhancement 

Project 

Raman Field production enhancement 

project was started in 1994 and operations 

such as drilling horizontal and vertical wells, 

increasing rates, workover operations, recompletion 

operations and water shut-off 

treatments (polymer injection) to increase oil 

production have been continuing by the end 

of 2011. 

23.1 million barrels of additional oil was 

produced by means of this project. 

7 new wells were drilled in the field to increase 

oil production in 2011 and well number 

increased to 249.

25 

Garzan Water Injection Project 

Garzan Field, which has 300 million barrels 

oil in place, is one of the biggest oil fields in 

Turkey. 

Within the scope of mentioned project, 28.8 

million barrels of oil in Garzan-B Field and 

13.2 million barrels in Garzan-C Field were 

produced by the end of 2011. 

Batı Kozluca Field Water Alternating 

Gas Injection (WAG) Project 

By the end of 2011, cumulative gas injection 

reached to 5,982 MMscf (169 million m³) and 

cumulative water injection reached to 831,383 

barrels. CO 2 and water injection still continue. 

As results of pilot polymer gel injection done 

in 7 wells to reduce water-cut values in 2007 

that were satisfying, gel injection operations 

were done in 75 wells throughout the year. 

Approximately 756,000 barrels of extra oil 

production was obtained from these 75 wells. 

Gross production rates of more than 20 

wells were changed gradually in 2011. 2 

abandoned wells were put into production 

after gel operation. As a result, approximately 

18,500 barrels of additional oil were produced 

by these operations in 2011. 

Being conscious of our country’s 

sustainable development and as a pioneer 

corporation in energy sector, we conduct 

our activities in the context of environmental 

harmony and social consciousness and 

we make no concession of our sensitivity 

to this subject. 

We all have the right to live in a healthy 

and balanced environment. To protect 

the environment is our most important 

responsibility. With the aim to bequeath 

a habitable environment to today’s youth 

tomorrow’s future, we actively take the 

necessary environmental precautions in 

our activities.

international exploration 

and production activities 

26 

5 

billion 

USD 

In the context of territory and country priorities 

resulted by the global evaluation studies we 

have conducted in recent years, as Turkish 

Petroleum, we not only focus on the countries 

in our nearby geography but also attach 

importance to increase our reserves. 

To achieve our strategic targets, it is 

necessary for us to add new reserves and turn 

them into production immediately. For this 

reason, international activities have become 

gradually more important. Being aware of the 

strategic importance of energy, for ensuring 

Turkey’s security of supply, we have set up 

the roadmaps and action plans for achieving 

its objectives in the years ahead.

We have become an important actor in the 

region with the international exploration, 

production and development projects since 

1990’s. Within the context of these activities, 

most of our international production is 

generated from Azeri-Chirag-Guneshli Project 

in Azerbaijan. 

BTC Main Export Crude Oil Pipeline started 

its operations in 2006. So, the production in 

Azerbaijan Projects is expected to increase 

and to reach its highest level. 

Following the completion of SCP Gas Pipeline 

in 2006 and the proceeding operations, our 

first international natural gas production as 

a shareholder of Shah Deniz Project started 

in March 2007. In addition to Azerbaijan 

projects, our production from Kazakhstan 

fields in which we are partner, continues. 

Kazakhstan 

As Turkish Petroleum we conduct our 

activities in Kazakhstan through a joint 

venture company, KazakhTurkMunai (KTM) 

Ltd. in which we hold 49% while KazMunaiGas 

holds 51% of the shares. KTM Ltd. has one 

concession license in Aktau Region and 

two in Aktubinsk Region of the Western 

Kazakhstan. The exploration and production 

activities have been proceeding in 7 fields in 

line with these three licenses. 

In 2011, average production of KTM Ltd. was 

1,691 barrels/day in Aktau Region and 3,048 

barrels/day in Aktubinsk Region with a total 

number of 4,739 barrels/day. 

In the same year, the annual crude oil 

production of our Corporation is 920 thousand 

barrels while the cumulative number of crude 

oil production is 16.7 million barrels. 

Caspian Region 

It is estimated that, Caspian Region holds 

4% of the world oil reserves and 6% of the 

gas reserves. Because of the cultural and 

historical ties, Caspian Region has a special 

importance and value for Turkey. 

As a result of our country’s being a potential 

market, having the significant role in 

transportation of energy resources to western 

markets and becoming an energy hub, 

Turkey’s strategic and geopolitical power in 

the area will increase accordingly. 

Azerbaijan 

We are currently a participant of three 

exploration, development and production 

projects which are Azeri-Chirag-Guneshli 

(6.75%), Shah Deniz (9%) and Alov (10%) 

Projects in Azerbaijan. 

Furthermore, we have a share of 6.53% in 

the BTC Co. which is carrying out all activities 

of Baku-Tbilisi-Ceyhan Main Export Crude 

Oil Pipeline Project and 9% share in South 

Caucasus Natural Gas Pipeline Project 

which transports Shah Deniz gas to Turkish- 

Georgian border. 

Azeri-Chirag-Guneshli (ACG) Project 

“The Joint Development and Production 

Sharing Agreement” for ACG Project was 

signed in Baku among the State Oil Company 

of the Azerbaijan Republic (SOCAR) and 

the consortium constituted by the foreign 

companies in 1994. 

Azeri-Chirag-Guneshli structure is located 

in the south of Caspian See and about 100 

km east of Baku. The license area of Azeri- 

Chirag-Guneshli is almost 432 km² with water 

depth varying between 100 and 300 m. 

The oil reserves of the ACG are is estimated to 

be 5.56 billion barrels and around 1.91 billion 

barrels of crude oil has been produced from 

the area by the end of 2011. 2011 production 

of the project is 262 million barrels. Our share 

from the area was 5.63 million barrels in 2011 

while the number is 83.3 million barrels in 

total from the beginning of the project. 

27

28 

ACG Project has been developed in phases. 

The production has started from Chirag Field 

(the early oil project) in November 1997. The 

Phase-1 (Development of the Central Azeri 

Field) was put into production in 2005. The 

productions of the Phase-2 (Development 

of the West and East Azeri Fields) were 

commenced in 2006 and the production 

of Phase-3 (Development of Deep Water 

Guneshli Field) was started up in 2008. 

Chirag Oil Project (COP) which aims to 

produce oil from undepleted area between the 

existing platforms in Chirag and Deep Water 

Guneshli is on the execution phase and it is 

expected to be online at the end of 2013. 

Shah Deniz Project 

The project has been signed in 1997 and after 

the completion of the Minimum Obligatory 

Work Program of the Exploration and the 

Extended Exploration Periods in 2001, 

commerciality of natural gas and condensate 

has been declared. 

The Shah Deniz Structure is located in the 

offshore South Caspian Sea, 70 km southeast 

of Baku and 70 km southwest of the Azeri- 

Chirag-Guneshli Field. The concession has 

area coverage of approximately 860 km² with 

water depth varying between 150 and 600 m. 

According to the Sales and Purchasing 

Agreements (SPA), within the scope of 

Phase-1 in the project which had 625 

billion m³ natural gas and 750 million barrel 

condensate reserves, the produced gas has 

been exported to Turkey, Azerbaijan and 

Georgia. 

With the Shah Deniz Phase-1 Field 

Development and Construction Decision, 

the production has started on December 

2006 while the commercial production 

started in April 2007. The expected annual 

plateau production in Phase-1 is specified as 

8.6 billion m³ and 6.6 m³ of this amount is 

segregated to Turkey for 15-years period. 

By the end of 2011, the cumulative produced 

natural gas is 30.7 billion m³ and produced 

condensate is 63.8 million barrels. For 2011, 

the amount of them was 6.7 billion m³ and 14 

million barrels, respectively. 

The equity of TPAO through the project is 2.2 

billion m³ of natural gas and 4.7 million barrels 

of condensate. In 2011, these numbers 

are 467 million m³ for natural gas and 967 

thousand barrels for condensate. 

For Phase-2, it is estimated that construction 

decision will be taken in 2013 and first gas 

delivery will be realized in late 2017. 

Alov Project 

Turkish Petroleum Overseas Company 

(TPOC), a wholly owned subsidiary of TPAO 

joined the Project after signing EDPSA, by 

an “Agreement on Participating Interest to be 

Vested” on July 29 th , 1998. As of December 

21 st , 2011 TPOC was assigned as the 

operator of the Alov Exploration Project. 

Alov Exploration Project covers three different 

prospective structures named Araz-Alov 

Sharg in the Middle of the Southern Caspian 

Sea. The license area is located 500 km 

south-east of Baku in water depths varying 

from 400 m to 1000 m. 

For the Alov Project, the minimum contractual 

commitments are 1,400 km² 3D seismic 

surveys and drilling of three exploration wells 

for the three-year exploration period. The 

legal status determination of Caspian Sea is 

waiting for the first exploration well drilling. 

Pipeline Projects of TPAO 

Contributing to the Energy Corridor 

In Turkey, which resides at the intersection 

of Middle East and Caspian Regions having 

the major portion of the world oil reserves, 

the basis of the energy corridor to carry the 

energy resources to the world market was 

initiated by the constructions of BTC and SCP 

Pipeline Projects.

Following the determination of the Black Sea 

hydrocarbon potential, it will be transport 

through our country to the markets in safe 

way on time. 

29 

In this regard, our Corporate is taking its 

own part in meeting the natural gas and oil 

demand of our country and we also continue 

our activities of increasing our efficiency and 

control through the east-west energy corridor. 

A Memorandum of Understanding was signed 

on 26 December 2011 between Azerbaijan 

and Turkey for TANAP (Trans Anatolia 

Pipeline) to transport the Azeri gas through 

Turkey to Europe. BOTAŞ and TPAO are 

partners in this project, and after realizing it, it 

will be the second biggest pipeline project on 

Anatolia after BTC pipeline. 

Baku-Tbilisi-Ceyhan Main Export 

Crude Oil Pipeline (BTC) Project 

Within the scope of the Project, an 

approximately 1,768 km long pipeline, with 

a nominal capacity of 50 million tons/year, 

starting from Sangachal Terminal close to 

Baku-Azerbaijan passing by Tbilisi-Georgia 

and reaching to the Mediterranean Sea at 

Ceyhan-Turkey, has been constructed and 

operating since 3 June 2006. By the end of 

year 2011, 1,345 million barrels of crude oil 

carried by 1,742 vessels. 

Currently, transportation of a large portion of 

ACG oil, all of Shah Deniz condensate and 

some Kazakh Tengiz and Turkmenian oil is 

proceeding and 257 million barrels of oil was 

loaded to 355 tankers from Haydar Aliyev 

Terminal in 2011. 

The transportation of oil produced in Caspian 

Region, especially from ACG Project in 

Azerbaijan to the world markets, in a safe, 

secure, reliable and environmentally friendly 

way is continuing through the BTC Project 

which is the first step of East-West Energy 

Corridor. 

South Caucasus Natural Gas Pipeline 

(SCP) Project 

Within the scope of SCP Project, Shah Deniz 

natural gas is being transported to Georgian- 

Turkish border. The SCP passing through the 

same corridor with BTC is about 690 km in 

length.

30 

After commencement of the construction of 

the pipeline physically in 2004, construction 

activities have been completed. In line with 

the production activities of Shah Deniz, 

continuous gas transportation was started on 

March 7 th , 2007. 

The pipeline has a transportation capacity of 

9 billion m³ of natural gas to Turkish border 

with one compressor station in Sangachal 

Terminal according to the terms of AGSC- 

BOTAŞ Sales and Purchasing Agreement 

(SPA). However, it is possible to expand this 

capacity up to 22 billion m³ annually by adding 

new compressor stations and/or looping. 

In 2011, totally 6.65 billion m³ natural gas was 

transported and 3.67 billion m³ of this amount 

was sold to BOTAŞ. The main target of the 

project is to transport the gas produced from 

Caspian Region to Europa via Turkey in the 

future. 

North Africa and Middle East Region 

Libya 

TPOC, a fully owned affiliate of TPAO, is 

conducting exploration and appraisal work as 

operator in the Area 147/3&4, Murzuq Basin, 

Libya. 7 out of 11 wells drilled in the basin 

were completed as oil well. Libya NOC made 

the official discovery announcement over 6 

structures tested. The drilling of an appraisal 

well was completed in 2011. 

The other planned drilling and operations 

could not be performed and suspended 

temporarily due to the events started on 

February 2011 in Libya. TPOC Libya Branch 

Office started its studies in September 2011. 

Iraq 

Since 1994, TPAO has been working closely 

with the Iraqi Ministry of Oil for exploration, 

development and production opportunities in 

Iraq. 

In addition to TPAO’s success in first and 

second licensing rounds organized by the 

Iraqi petroleum authority PCLD (Petroleum 

Contracts and Licensing Directorate) in 2009 

and awards of Badra and Missan Oil Fields 

development, TPAO has offered three bids for 

the Iraq’s third licensing round and has been 

awarded for 20 year term operating rights for 

Siba and Mansuriya Gas Field in 2010. 

Badra Oil Field Development Project 

In 2009, within the scope of the second round, 

the consortium including TPAO was awarded 

for a contract to develop Badra Oil Field. 

KOGAS (South Korea) and PETRONAS 

(Malaysia) take part in the project as partners 

while GAZPROM NEFT has the role of 

operating of the project. TPAO holds 10% of 

the shares in the consortium. 

The effective date of the signed agreement 

was February 18 th , 2010. Seismic acquisition 

and interpretation works have been 

completed, and drilling of 2 development 

wells continues as of December 2011. 

Missan Oil Field Development Project 

Missan Oil Field is located about 175 km north 

of Basrah city and includes Abu Ghirab, Jabal 

Fauqi and Buzurgan oil fields. These fields 

will be developed by CNOOC (Operator, 

63.75%), TPAO (11.25%) and IDC (25%). 

The Producing Fields Technical Service 

Agreement (PFTSC) was signed on May 17 th , 

2010 with the effective date of the Agreement 

of December 20 th , 2010. 

6 Wells were drilled and completed and 2 

drilling operations are ongoing in the Missan 

Fields. The tender for seismic data acquisition, 

process and interpretation was finalized and 

seismic operations are expected to start in 

2012, accordingly. 

Siba Gas Field Development Project 

The consortium, in which the operator, Kuwait 

Energy Company (KEC), holds 60% and 

TPAO holds 40% of shares, won the bid for 

Siba Gas Field in Iraq’s southern oil hub of 

Basra on October 2011. The consortium has

The first draft of the Preliminary Development 

Plan (PDP) for Mansuriya Field was submitted 

to Iraqi authorities on January 18 th , 2012. 

Seismic studies, rehabilitation of existing 

wells, drilling of two appraisal wells and 

engineering of 350 million scf/day capacity 

sub-surface facilities and related tendering 

procedures are included in the 2012 targets 

for the project. 

31 

East Mediterranean Project 

started to work on the field with the effective 

date of the Agreement of July 1 st , 2011. The 

first drilling operation will be commenced in 

2012, accordingly. 

The Preliminary Development Plan (PDP) 

was submitted to the Iraqi authorities on 

December 31 st , 2011 and the geological, 

geophysical and reservoir studies for the 

development activities are being conducted, 

currently. 

Mansuriya Gas Field Development 

Project 

The consortium including TPOC as the 

operator with 50% share, KEC and KOGAS 

as partners with respectively 30% and 20% 

share won the Mansuriya Gas Field on 

October 2010 in the third round. The effective 

date of the contract which was signed 

between the parties on the 5 th of June 2011 

was declared as the 18 th of July 2011. 

Following the agreement with Turkish Republic 

of North Cyprus, our exploration activities in 7 

offshore and 1 onshore license surrounding 

the north and east side of the island were 

commenced. Thus, TPAO becomes the 

pioneer actor in East Mediterranean with its 

licenses. Drilling operations in Türkyurdu-1 

well, which is our first well in TRNC, are 

ongoing. 

Other Activities 

In addition to the activities mentioned above, 

we have been continuing to search and 

negotiate for business opportunities in other 

hydrocarbon rich regions such as Russian 

Federation, Middle East and North Africa and 

Venezuela. 

The loading ports of TPAO’s production from 

mentioned projects are Ceyhan/Turkey and 

Supsa/Georgia Terminals. The crude oil sales 

are done on Free-on-Board (FOB) basis with 

subject to TPAO General Terms & Conditions 

(TPAO GTCs). 

For the last two years, a total of 13.4 million 

barrels have been sold and $ 1.28 billion 

revenue has been generated by the monthly 

tenders.

technology and 

services 

32 

seismic 

research ship 

Within the scope of using advanced 

technology, 2D seismic data acquisitions 

system with 240 active channel capacity was 

re-designed and converted to 3D seismic 

data acquisitions system with 1,440 channels. 

Through this system, shot number per km² 

was reduced and also cost reduction and time 

savings were obtained. 

3D Seismic Interpretation and Simulation 

System was put into operation in May 

2005 in order to minimize the risk factor in 

hydrocarbon exploration and to carry out 

integrated and more effective seismic data 

surveys in the interpretation systems through 

the goal of raising the discovery success ratio 

in new oil fields.

Today, oil companies are faced with the issue 

of archiving their well and seismic data in a 

safe and effective way. To overcome this, 

PetroBank ® MDS software is being used 

by companies. 

Since the wearing of the Rigs due to intense 

drilling activities in recent years and new 

innovations in technology lead us to focus on 

purchasing new rigs and upgrade current rigs 

in 2011. 

Field Development Technology 

All oil and natural gas fields are monitored 

actively by multidisciplinary teams using 

specialized software with regularly updated 

digital database and by broad network 

with fields. In addition to this, reservoir 

performance for alternative field development 

scenarios are generated and compared 

virtually to quantify risks and outcomes and 

hence utilizing them in the field management. 

Production performance of fields and wells 

are being monitored, hence field and well 

performances are maximized. 

Moreover, future production forecasts of the 

all fields and wells can be made by analyzing 

“Decline Curve Analysis”. 

As a result of these technological and 

scientific studies, new infill well locations, 

new production zones in a reservoir, 

suitable EOR methods in the field and 

appropriate stimulation methods to improve 

the performance of existing wells can be 

determined. In short, the production fields are 

managed in a globally competitive fashion. 

Research and Development 

Technologies 

The knowledge gained through RD studies 

and new technology are combined and 

reflected to laboratory supported projects 

in the exploration and production activities. 

These technologies are; 

• Isotope Geochemistry, 

• Determination of Oil and Gas Composition, 

• Determination of Oil Molecular Parameters, 

• Surface Geochemical Prospection, 

• Soil Gas Analyses, 

• Determination of Source Rock Parameters, 

• Scanning Electron Microscope, 

• X-Ray Microanalysis Spectrometer, 

• Spectral Core Gamma Ray Logger, 

• Determination of Solid Phase Behavior 

under Reservoir Conditions, 

• Interfacial Tension and Contact Angle 

Measurements, 

• Reservoir Conditions Core Flood System 

• GC Analysis to Determine Oxygen 

Compounds in Gasoline, Fatty Acid in 

Biodiesel, 

• LC Analysis for PAH (Poly Aromatic 

Hydrocarbons) Measurements, 

• Computer-Aided Mud-Cement Systems, 

• ICP-MS, 

• FTIR, 

• Gum Content Tester, 

• Micro Carbon Residue Tester, 

• Lubrication Tester, 

• Mobile Laboratory Applications. 

Services 

Seismic Data Acquisition 

“Seismic data acquisition” has been carried 

out by our Corporate with three Seismic 

Crews. 

Seismic Crew-1 and Seismic Crew-3 are 

operating with “Vibroseis” method. They 

have been operating in 3D seismic data 

acquisitions with Sercel-428 XL type recorder 

and they have 12 receiver lines, 120 receiver 

channels, totally 1440 active recorder channel 

system and 2500 channel capacity. 

Seismic Crew-2 is operating with “Dynamite” 

as an explosive energy source. In addition to 

2D seismic data acquisitions, it has 12 receiver 

lines, 120 receiver channels, totally 1440 

active recorder channel system and totally 

2000 channel capacity for 3D acquisitions. 

33

34 

Sercel-408 UL type recorder is being used 

by Seismic Crew-2. In topographic surveys, 

Leica GPS1200 system is being used by 

all crews and required data quality control 

and preplanning studies are carried out by 

EGHAS software. To increase the production 

rate, quality control procedures has been 

applied in all phases. 

Furthermore, seismic field design, 

topographic quality control, recorder quality 

control and static analyses have been applied 

while performing Seismic Data Acquisition 

Services. 

Non Seismic Data Acquisition 

Gravimetric and Magnetic Surveys 

Non-Seismic Data Acquisition surveys are 

carried out by one Gravity and Magnetic 

Acquisition Crew under our Corporate. 

Seismic Process Applications 

• Seismic Modelling, 

• Refraction Static, 

• Signal Processing, 

• Multiple Attenuation, 

• DMO, 

• 2D/3D Post-Pre Stack Time/Depth 

Migration and AVO, 

• VSP Processing, 

• Long Offset Seismic Line Process. 

Seismic Data Processing Softwares 

2D/3D onshore and offshore data processing 

have been realized by Focus and Geodepth 

softwares of Pradigm Company. Also, 

Thrustline Softwares by Geotomo Company 

have been used to solve problems in South 

Eastern Anatolia Thrust Zone. 

Interpretation Systems 

In order to meet the demand of softwares 

and hardwares for oil exploration and other 

requirements, ORACLE data base is being 

used for CBS system and other applications 

in TPAO. In these systems, 110 TB disk 

capacity is on EMC, HITACHI and IBM disk 

units. In addition to this, ADIC and IBM tape 

libraries with approximately 300 TB capacity 

and expandable structure are being used for 

backup and disaster recovery systems are 

being used. 

GIS and Remote Sensing 

In GIS studies, the products of ESRI which 

are ArcGIS desktop softwares and ArcGIS 

Server/ArcSDE geographic data servers 

and as the data base, ORACLE softwares 

are being used. The digitizing of geological 

maps produced with field surveys by TPAO 

staff and unification of these maps as vector 

data with CBS approach is a current project 

that is studied on intensively and livingly. 

Additionally, it is planned to conduct studies 

about unification of vector topographic maps 

with CBS approach. 

Well Geology Services 

Mud Logging Unit (MLU) Systems 

By MLU systems, which provide well pursuits 

services, data that belongs to geological and 

drilling disciplines are registered methodically 

and provided for the service of relevant project 

and management authorities. 

Real Time Visualization System 

Within the advanced technology and in 

accordance with requirements of our 

Corporation, Real Time Visualization project 

which had been started to be built up in 2007, 

was to put into service in 2008. 

Research Center Laboratory Services 

In 2011 training, consulting and engineering 

services were performed on due basis 

requests. On behalf of the private domestic 

and foreign oil companies, sedimentological, 

mineralogical-petrographical, diagenetical, 

biostratigraphical and geochemical analyses 

were carried out. 

In this context; 

• Stratigraphy, 

• Sedimentology and Reservoir Geology, 

• Drilling Technology, 

• Reservoir Technology Engineering, 

• Production Technology,

Drilling Services 

While conducting drilling activities with highly 

experienced staff, our target is to drill the wells 

in a safe, secure and high quality manner with 

low cost by applying the latest technology. 

35 

Activities in this context; 

• Drilling Experiences in 2,811 wells, 

• Deep Well Experience, 

• Directional and Horizontal Wells, 

• Multi-Lateral Well Drillings, 

• Extended Reach Drilling. 

• Organic Geochemistry, 

Laboratory services were provided. 

Research Center Training Activities 

• Applied Well Control, 

• Biostratigraphy, 

• Sedimentology of Fan Deltas, 

• Clay Mineralogy and Microanalysis 

Techniques and Their Usage in Exploration, 

• Basin Classification and Tectonics Course, 

• Applied Drilling Fluids Technology, 

• Well Cementing Slurry Design, 

• Matrix Acidizing, 

• Core Analyses, 

• PVT Analyses, 

• Oilfield Water Treatment and Injection 

Quality Determination, 

• Corrosion Control in Oil & Natural Gas 

Production. 

Well Completion Services 

Well completion services have being provided 

in Turkey and abroad by TPAO. Workover, 

cementing, acidizing, DST, logging and 

perforating operations have been conducted 

in oil, natural gas and geothermal wells by 

following high standards. 

Workover Operations 

63 completion, 138 recompletion and 3,777 

workover jobs were performed by utilizing 14 

workover rigs and 7 rodpuller rigs in 2011. 

Log Operations 

Totally 632 logging and perforating jobs 

were accomplished in 2011; as well as 26 

checkshot/VSP operations. 

Technical Operations 

In 2011, 530 cementing operations (in which 

12,312 tons of cement used), 254 acidizing 

operations (804,265 gallons of acid used) and 

121 DST operations were performed.

esearch center 

36 

Turkish Petroleum took its place among 

major oil companies in its region with its 

contemporary, dependable, modern & 

accredited laboratories at an international 

level. 

TPAO Research Center, established in 1974, 

has a capacity to perform over 400 different 

types of analyses and tests with its 29 different 

laboratories and 90 well-trained, experienced 

staff. 

Research Center provides projects related 

to Research and Development studies, 

consultancy services and is an efficient 

Research Center with its expertise 

experiences.

In this context, a total of 29 projects, which are 

in collaboration with exploration, production, 

occupational safety and environmental 

protection departments, were performed. 

On the other hand, the project of “Management 

of Waste Water” resulted by petroleum and 

natural gas activities and the project of 

“Management and Disposal of Waste water 

resulted by TPAO activities” are being carried 

out with TÜBİTAK and İTÜ Environmental 

Engineering Department. 

Quality control tests were conducted in the 

Geology and Engineering Laboratories within 

the scope of these projects. 44,244 analyses 

and quality control tests were conducted. 

63 reports were prepared related to these 

activities. Throughout the year, totally 3,266 

man/day of field/well activities were carried 

out in domestic and international operations 

of TPAO. 

TPAO Well Control Training Center & Given 

Applied Well Control Courses is accredited 

for Rotary Drilling Programme and Rotary 

Drilling Introductory Level Programme by 

IWCF until 10.11.2015. 

Thus, 19 Applied Well Control Courses were 

carried out for 202 personnel. IWCF Well 

Control Certificates, TPAO Well Control 

Certificates and TPAO Certificates of Course 

Completion were granted to the successful 

trainees in 2011. 

Totally 388 trainees were given occupational 

and technical trainings with 40 courses on 12 

different subjects. 

Research Center Laboratory Services 

In the Geology Laboratories, analyses were 

performed mostly related with biostratigraphy 

(micropaleontology, nannoplankton and 

palynology), sedimentology (petrography, clay 

mineralogy, scanning electron microscope- 

SEM/EDS, lithology, sequence stratigraphy 

and reservoir evaluation), geochemistry 

(gas, oil, source rock, organic petrography, 

oil and gas origins, isotope analyses, oil-oil 

and oil-source rock correlations, reservoir 

geochemistry, mathematical modeling, 

evidence analyses, oil systems and potential 

with informing samples) subjects. 

In Drilling, Reservoir and Production 

Technologies laboratories, studies and 

analyses related to drilling fluid and cement 

program, additives quality control, rock 

mechanics-well bore stability simulation, 

simulation of hydraulic and acid fracturing, 

basic and special core analyses, reservoir 

fluids (PVT) analysis and EOR subjects, 

corrosion and scale control, injection water 

quality, fuel oil analyses, are conducted. 

In order to register Research Center 

Laboratories as contemporary, dependable 

and umpire laboratories at international 

level, studies were carried out accordance 

with TS EN ISO/IEC 17025:2005 “General 

Requirements for the Competence of 

Calibration and Testing Laboratories” 

standards. Total of 34 analyses are being 

conducted which are in main titles; 

• Oil Products Analyzes, 

• Water, Drilling Fluids Additives Analyzes, 

• SEM/EDS and Clay Minerals Analyzes 

• Biodiesel Analyzes. 

37 

Moreover, the scope expansion studies were 

carried out and studies of three new analyses 

for diesel, fuel-oil and natural gas completed 

and accreditation application was realized to 

TURKAK within 2011.

occupational safety and 

environmental protection 

38 

With environment conscious and model 

implementations gained by our employees, 

we are aware of our responsibility to bequeath 

a clean environment with clean water, air and 

soil to the posterity. 

We know that respecting environment means 

respecting human beings and in the context 

of this, by taking all necessary precautions to 

mitigate the risk of our activities, we aim to 

bequeath a clean, healthy and dependable 

environment to the future. 

With the thought that any activity can’t be 

sustainable if it is hazardous to environment, 

we conduct our activities with the latest

technology, by not harming the environment in 

accordance with environmental legislations. 

Human health, occupational safety and 

environmental protection activities are carried 

out extensively with new projects parallel with 

increasing exploration, drilling and production 

activities. 

Employees are being taught by drills of 

occupational safety and environmental 

protection before the activities in parallel to 

the emergency intervention plans prepared 

for these activities and projects. 

Environmental Protection 

In 2011, complying with environmental 

legislation, bioremidation, stabilization and 

neutralization activities were performed to 

prevent environmental contamination resulting 

from field activities. Mud pit rehabilitations 

were conducted in drilling sites. Within the 

scope of Waste Management Plans, wastes 

like paper, battery, toner, cartridge and medical 

wastes were all collected for elimination and 

recycling. 

In the context of The Management Project of 

Waste Water Arising by the Oil and Natural 

Gas Production Activities, to dispose the 

waste water arising from gas production 

activities after processing, a pilot treatment 

facility was established in Hamitabat and 

experimental works started. 

Practical activities were carried out to 

eliminate or minimize the negative effects of 

the waste water arising from drilling activities 

aiming at leaving the drilling location at a 

position like its initial status. 

A minimum size mobile industrial treatment 

unit was designed and manufactured to be 

used in separating the water phase from 

dense and dirty disposal mud in mud pits. 

Successful results were achieved in re-use of 

waste water for drilling mud. 

Occupational Health and Safety 

Regarding all risk levels of activities, our 

Corporation aims at eliminating or mitigating 

the risks to the acceptable levels. In risk 

studies; periodic audits are conducted for 

detection of risks, researching the accident 

causes, determining the hazards, detecting 

the unsafe ambience and unsafe actions. 

In this context, “Emergency Intervention 

Planning” and “Risk Assessment” were carried 

out for Çayağzı Natural-Gas Production 

Facility, Silivri Natural-Gas Proses Facility and 

Marmara Ereğli Crude-Oil Storage Facility. 

Fire Protection Trainings and drills were 

conducted to eliminate fire risks. Deficiencies 

were detected and eliminated reviewing the 

current systems. 

At Corporation health center, primary health 

service requirements of the staff are provided 

and “Patient Pursuit System” is being used. 

Trainings were organized on occupational 

safety and environmental protection to assure 

the idea of sharing responsibility among the 

employees from the highest rank to the lowest 

and increase the staff consciousness level on 

environmental protection. 

In 2011, 1,056 staff took part in Occupational 

Safety and Environmental Protection 

trainings. Training facilities are increasing 

year by year. New subjects were added to 

our training variety. These are; working on 

height courses for Derrickmen, Emergency 

Intervention Planning courses for three 

Shore Facility employees and BOSIET (Basic 

Offshore Safety Induction and Emergency 

Training) & HUET (Helicopter Underwater 

Escape Training) trainings for deep water Off- 

Shore projects. 

39

human resources 

40 

With the honor of having a dynamic Human 

Resources System, we believe that success 

can only be achieved through highly 

motivated, expert individuals. 

We have been conducting our activities for 

58 years with its worldwide technological 

infrastructure and qualified manpower that 

represented our corporation successfully in 

international projects.

In this context, TPAO continuously invests in 

human resources development in line with its 

vision to become regionally effective worldclass 

energy company. 

In TPAO, having a rooted company culture 

with its staff’s great endeavor and dedication, 

total number of employees is 4,851; 1,663 

in General Directorate, 1,773 in Batman, 

486 in Thrace and 929 in Adıyaman District 

Management by the end of 2011. 

TPAO’s qualified and experienced staff having 

the values of team work, communication, 

innovativeness and sense of responsibility, 

will carry our Corporation to great success in 

the future. 

Work Analyze Project and 

Performance Management System 

Human being is the most valuable source 

in institutions in order to compete in sector 

conditions that globalization requires. Thus, 

while investing in human beings, institutions 

have to develop and implement systems. 

In this scope, Work Analyze Project that 

contributes to the integration of “Modern 

Human Resources Management Functions” 

to our Corporation’s structure, conducted 

during 2011. Terms of reference was 

prepared, work evaluation and wage system 

studies are completed. Preliminary studies for 

work analysis of uncovered personnel were 

started. 

“Performance Management System”, initiated 

to increase the performance of our staff, was 

revised in 2011 through the experience gained 

in the past years. It was converted to a system 

easy for users and giving directly feedback 

to managers. Competence designated with 

terms of reference is adapted to the system. 

Continuous Training 

All corporations need qualified staff, who 

can help reaching the corporation’s goals 

and objectives. Objective of training and 

development activities is to equip staff with 

the skills and knowledge that will enable them 

to contribute to the targets of the corporation. 

Within this scope, training and development 

courses were accelerated for the staff to 

follow up-to-date information and developing 

technology in 2011. 

In this context, a total of 5,338 staff, 5,079 

in Turkey and 259 abroad, participated in 

various training programs. 

Within the scope of orientation training 

program, new employees of different 

departments have been informed of our 

field activity, visited oil fields in the District 

Managements and carried out onsite 

inspection. 

Life Quality of the Employees 

TPAO believes that self-sacrificing studies 

and high performance of the employee 

depend on high life quality. Based on this 

belief, various social activities such as spring 

festival, bowling, dart, soccer and tennis 

tournaments have been arranged in order to 

increase motivation of the employees. 

These activities also provide communication 

required for the company culture to be 

effectuated. Besides, TPAO offered holiday 

opportunities for the employees with their 

families in its own Social Complex in Güllük/ 

Muğla. 

41

district managements 

42 

As Turkish Petroleum, we conduct our 

activities according to Environmental Impact 

Assessment (EIA). By afforesting the activity 

fields, we intensively work to bequeath green 

fields to our posterity. 

Our District Managements, while conducting 

their activities, have a great role in the 

development of the social and economical life 

of the regions. 

Our Corporation is structured as Batman, 

Thrace and Adıyaman District Managements.


In Batman District Management exploration, 

drilling and production activities of crude oil 

and natural gas, which are vital inputs of 

national economy, have been carried out 

continuously since 1954. 

The first oil discovery in Turkey was realized 

at Raman Field, in 1945 by MTA and the 

first production in economical means was 

realized in Raman-8 well in 1948. After the 

foundation of TPAO in 1954, Batman District 

Management played a leading role in the 

exploration, drilling, production and refinery 

activities of the country. 

To protect the soil and prevent soil pollution 

during and after hydrocarbon exploration 

and production activities, Batman District 

Management concentrated on the 

implementation studies of bioremediation 

method used by the petroleum companies 

worldwide, in addition to the rehabilitation 

studies of contaminated soil through 

neutralization and stabilization methods. 

Batman has gained a great dynamism in 

the economical and social areas with the 

discovery of oil and the establishment of 

refinery. Today, Batman, as being located 

around TPAO complex and plant, has a great 

deal of contribution to the national economy 

by increasing the employment volume in the 

region. Furthermore, in the context of social 

responsibility, TPAO Kindergarten, from which 

200 students benefit, was established in 

2011 in Batman District Management. Atatürk 

Elementary School with 40 classroom will be 

put into service in 2012 in the same complex. 

Thrace District Management 

TPAO initiated its exploration and drilling 

activities in Thrace Basin with Uluman-1 

well, in 1960. As a result of the operations 

performed in Thrace District, the first 

economical natural gas discovery was made 

in 1970 at the Hamitabat and Kumrular fields, 

and the first oil discovery was realized in 

K.Osmancık and Deveçatak wells which were 

drilled in 1973-1974. 

Silivri Underground Natural Gas Storage 

Facility was established in 2007 and the reproduction 

processes are being maintained 

successfully in the 5 th Storage period. Taking 

the importance of gas storage units in gas 

supply security and energy independence 

of our country into consideration, studies to 

increase its storage capacity to approximately 

3 billion sm³ and its re-production capacity to 

50 million sm³/day were initiated. 

TPAO contributes to the economy of the 

Thrace Region by providing low-cost energy 

input to the industrial plants that play 

significant roles in the national economy. 


In 1954, after the adoption of the Petroleum 

Law No. 6326 foreign companies came to 

Turkey for oil exploration and in 1958, the first 

petroleum exploration of Adıyaman Region 

was made by California Asiatic Oil and Texaco 

Overseas Petroleum at Kahta-1 well. 

In Adıyaman District, TPAO has realized 

the first oil discovery in 1971 after finding 

Adıyaman Field. By maintaining exploration 

activities, G.Adiyaman, K.Adıyaman, and 

Bölükyayla (1977), Çemberlitaş (1982), 

Çukurtaş (1985), B.Fırat and Akpınar (1986) 

fields were discovered. 

In 1988, after the discovery of Karakuş Field 

as a result of exploration activities, many 

fields like Cendere, Beşikli, O. Sungurlu, 

Tokaris and İkizce fields were discovered. 

Following this, Güzelçay, D. Yananköy and D. 

Şambayat Fields were discovered in 2011. 

In Çaylarbaşı Production Field, aiming to boost 

the production; cross-Intersection Project 

undertaken with the technique of directional 

drilling is continuing within the context of R&D. 

Moreover, Adıyaman District Management 

has made a great deal of contribution to the 

development of social life in the region, by 

increasing the operational efficiency in its 

activities and technical capacity to be helpful 

to the economy of the region and the country. 

43

subsidiaries and 

associated company 

44 

TURKISH PETROLEUM 

TPIC 

TP MISSAN 

TPIC 

TPBTC 

TP BADRA TURKISH PETROLEUM 

TP MISSAN 

TPBTC 

TPOC 

TP BADRA 

TURKISH PETROLEUM 

TP BADRA 

TPSCP TPIC 

KAZAKTURKMUNAY TPBTC 

TPOC 

TP MISSAN TPSCP 

TPOC 

Subsidiaries 

Turkish Petroleum International 

Company LTD. (TPIC) 

TPIC was established in 1988 in Channel 

Islands/Jersey, to operate in all branches of 

oil industry. 

TPIC focused its exploration, production and 

service activities in Colombia and Turkey, 

at the same time continues its business 

development activities in Middle East, Central 

Asia and Latin America.

Colombia Activities 

Gonzalez Block 

Since 2008, TPIC conducted joint exploration 

activities with its partner ECOPETROL; 

National Oil Company of Colombia, in 

Gonzalez Block in Catatumbo Basin. TPIC 

serves as the operator of the block where 

each partner has 50 % participating interest in 

the project. In the 2 nd exploration phase, the 

seismic operations were completed in 2008. 

The drilling operations of first exploration 

well, Rio Zulia West-3 (RZW-3), was 

spudded in November 2009 and completed 

in March 2010 with oil discovery. The second 

exploration well, Rio Zulia West-4 (RZW-4) 

was completed with oil show. In October 2011, 

ECOPETROL decided to assign its shares to 

TPIC. The process is still in progress. 

Maria Conchita Block 

In 2009, TPIC signed an Exploration and 

Production agreement for the 243 km² 

Maria Conchita Block located in the north of 

Colombia in the Guajira Basin with National 

Hydrocarbon Agency (ANH). TPIC holds 

51% of the shares as well as serving as the 

operator whereas Genel Enerji holds 40% 

and Multiservicios RJT LTDA holds 9 % of 

the shares. The acquisition, processing and 

interpretation of 120 km² 3D seismic data 

were performed in 1 st exploration phase in 

2010. 2 nd phase started in November 2011. 

An exploration well is planned to be spudded 

in the last quarter of 2012. 

Turkey Activities 

TPIC has 37 exploration licenses in 

Turkey. Total of 4 wells were drilled named 

Başpınar-2, Şambayat-12, Doğu Şambayat-1, 

Şambayat-13, Doluharman-1 in 2011. In 

addition to this, total of 120,355 barrel was 

produced in test production from Şambayat-1, 

Şambayat-12, Doğu Şambayat-1. 

Oil Field Services 

In 2011, TPIC enhanced oil field and 

geothermal services by increasing the number 

of crews both in Turkey and abroad, also gave 

workover services. TPIC drilled over 150,000 

m in depth in 86 wells (5 wells abroad) and 

completed 439 wells (34 wells abroad) so far. 

Oil and Geothermal Field Services 

TPIC continues its drilling and well completion 

services for TPAO with 8 drilling and 5 

workover rigs and geothermal drilling services 

for Soyak/Mis Enerji, Sanko/Santral Enerji, 

Aytemiz Elektrik, BM İnşaat ve Mühendislik 

A.Ş., Akça/Menderes Enerji, Güriş/Gürmat 

Elektrik, Zorlu Enerji and Kayen Enerji with 3 

drilling rigs. 

Iraq Activities 

TPIC holds the advantage of having access 

to the logistic and maintenance units of 

TPAO located close to the Iraqi border and 

participates in tenders for different fields 

throughout Iraq to increase its service 

operations in Iraq. TPIC participated in the 

tender opened by Iraq National Oil Company 

(South Oil Company) for drilling and 

completion of 45 wells and was awarded the 

project in 2010. TPIC completed 5 wells in the 

context of this project in 2011. 

Kazakhstan Activities 

Activities in Kazakhstan are successfully 

going on. Drilling services were given to 

Kazakh Turk Munay (KTM) Company for 5 

wells. 

Oil Products Trade 

Since 1999, TPIC has continued international 

oil and oil products trading and in 2011 TPIC 

conducted especially gasoil, fuel oil and 

bitumen trading activities in Turkey and in 

international market. In this context, TPIC 

continued its activities in Turkish Republic of 

North Cyprus (TRNC), Libya, Iraq, Europe 

and Turkey. 

TPIC is continuously in touch with Libya 

National Oil Company (NOC) to continue its 

45

46 

activities on the crude oil and oil products 

Libya exports and oil products Libya imports. 

On the other hand, products that TRNC 

demanded for power generation was provided 

by TPIC with the most appropriate market 

conditions. In addition, sale of products to 

European Mediterranean market was realized 

in this year. 

TPIC was one of the companies who 

entered and won the Iraq State Oil Marketing 

Organization’s (SOMO) tender of gasoil and 

gasoline supply through Turkey. TPIC took its 

place as one of the supplier companies in the 

gasoil supply through Persian Gulf route for 

Iraqi Ministry of Electricity power stations. 

TPIC continues its negotiations with PDVSA 

on frame of the housing and other construction 

projects in Venezuela lead by Turkish 

companies in exchange for the Venezuelan 

oil products. 

During 2011, in order to have a competitive 

advantage with other international oil 

companies, TPIC completed its registration 

and started operations in London 

Intercontinental Exchange (ICE) and New 

York Mercantile Exchange (NYMEX), where 

oil companies, banking, broker and trading 

structures are being operated. 

TP Petroleum Distribution Inc. 

TP Petroleum Distribution Inc. was founded 

on February 16 th, 2006 as a subsidiary of 

TPIC. Due to requirements, TP Petroleum 

Distribution’s capital, which was 50,000 TL 

in the beginning, is increased in the following 

years and reached to 100 million TL. 

With the target to reach market share of 10% 

with 750 dealers in the Turkish Market by 2020, 

TP Petrol Distribution continued to expand its 

station networking activities in 2011. By the 

end of 2011, TP Petrol Distribution achieved 

a number of 132 dealers. 

In 2011, 102,000 m³ of diesel was imported 

from Hatay-Dörtyol Facility and sold. Besides, 

black product trade started. Since its 

establishment, TP Petrol Distribution, which 

has continued growing, has become the 8 th 

biggest distributor in the end of 2011. 

Turkish Petroleum Overseas 

Company Ltd. (TPOC) 

TPOC Ltd. was established in Jersey, Channel 

Islands in 1996 as an affiliate of TPAO to 

carry out all activities related with technical 

and commercial oil and gas trade. 

TPOC Ltd. currently participates in Shah 

Deniz (9%) and Alov (10%) Projects in 

Azerbaijan sector of the Caspian Sea. TPOC 

is an operator in exploration projects in Libya, 

with 51% share in NCBlock- 189 (Sirte Basin) 

and with 100% share in NCBlock-147/3-4 

(Murzuq Basin). TPOC Ltd. has 3 offices in 

Iraq Bagdad, Libya Tripoli and Azerbaijan 

Baku. 

TP Missan Limited Company 

(TP MISSAN) 

TP Missan Ltd. was established in Jersey, 

Channel Islands on 10 August 2010 as an 

affiliate of TPAO to carry out all activities 

related with technical and commercial oil 

and gas trade. TP Missan Ltd. currently 

participates in Missan Project (15%) in Iraq 

sector of the Middle East. 

TP Badra Limited Company 

(TP BADRA) 

TP Badra Ltd. was established in Jersey, 

Channel Islands on 10 August 2010 as an 

affiliate of TPAO to carry out all activities 

related with technical and commercial oil and 

gas trade. TP Badra Ltd. currently participates 

in Badra Project (10%) in Iraq sector of the 

Middle East.

47 

Turkish Petroleum SCP Ltd. 

(TPSCP Ltd.) 

TPSCP Ltd. was established in Cayman 

Islands on May 24 th , 2002 in order to 

participate in South Caucasus Pipeline 

(SCP) Project, which aims to transport Shah 

Deniz gas and related project companies in 

accordance with the project agreements on 

behalf of TPAO. TPSCP Ltd. is a party of SCP 

Project agreements which have been signed 

on February 27 th , 2003. TPSCP Ltd. has 9% 

share in the SCP Project. 

Associated Company 

KazakTurkMunai (KTM) Ltd. Joint 

Company 

Turkish Petroleum BTC Ltd. 

(TPBTC Ltd.) 

TPBTC Ltd. was established in Cayman 

Islands on February 20 th , 2002 in order to 

participate in Baku–Tbilisi–Ceyhan Main 

Export Crude Oil Pipeline (BTC) Project, which 

has a primary objective of carrying the ACG 

and other Caspian Region oil to international 

markets in the Project Companies (BTC Co., 

BTC Int. Investment Co. and BTC Finance 

B.V. ) on behalf of TPAO. 

KazakhTurkMunai (KTM) Ltd. Joint Company 

was established on January 9 th , 1993 by the 

Foundation Agreement signed between TPAO 

and the Kazzarubejgeologia State Enterprise 

(KZBG) of the Kazakhstan’s Ministry of 

Geology and Preservation of Underground 

Resources. By this agreement, setting the 

shares as KZBG 51% and TPAO 49%, KTM 

Ltd. has acquired hydrocarbon exploration 

and operating rights in 7 blocks in 4 different 

regions of Western Kazakhstan. 

TPBTC Ltd. is wholly owned by TPAO and 

currently has a 6.53% share in the BTC 

Project and related companies.

TPAO, adopting reactive approach in its environment 

protection activities, will continue on its journey 

48 

in the sector as an effective world company in its 

region with its domestic and international activities 

and investments.

finance 

50 

600 

Our domestic budget which was 50 million 

USD at the beginning of 2000, reached to 600 

million USD in 2011. 

Most of our investments are comprised 

of especially exploration and drilling 

expenditures in offshore. Great oil discoveries 

are resulted by intensive exploration 

investment programs. It is expected that this 

great increase in investments will create a 

chance to find new oil sources.

International Investment and Operational Expenditures 

In 2011, TPAO conducted intensive work development activities in South America, Russia and 

Middle East Region which have rich hydrocarbon reserves. Besides, in Azerbaijan and Kazakhstan 

production activities, in Libya exploration activities and in Iraq exploration, production activities 

and investments have continued. 

In this context, TPAO’s international investment budget is realized as 370 million USD in 2011 

and it is foreseen that our investment program will continue increasingly in the following period in 

parallel to our ever-increasing work program. 

51 

Azerbaijan 

2011 2010 

316,943 

250,925 

(thousand USD) 

ACG Project 

219,825 

184,233 

Shah Deniz Project 

95,874 

65,495 

SCP Project 

13 

59 

BTC Project 

11 

51 

Alov Project 

- 

38 

TPAO Baku Office 

Kazakhstan 

Libya 

Iraq 

TPOC Office 

Work Development 

TOTAL 

1,220 

44 

10,142 

41,695 

296 

608 

369,728 

1,049 

78 

85,328 

13,652 

- 

44 

350,027

54 

Basis Of Presentation For The 

Financial Statements 

1.1 Statutory Books & Financial 

Statements 

The consolidated financial statements of 

TPAO and the Group have been prepared 

in accordance with International Financial 

Reporting Standards (IFRS). The company, 

which is incorporated in Turkey, maintains its 

books of accounts and prepares its statutory 

financial statements in accordance with the 

Turkish Commercial Code and Tax Legislation 

and the Uniform Chart of Accounts issued by the 

Ministry of Finance. The foreign subsidiaries 

and associates maintain their books of 

accounts in their local currency according to 

current commercial / fiscal legislation, project 

agreements, attachments and in compliance 

with the standards taken up as references. 

The financial statements have been prepared 

from statutory financial statements of the 

Company and its subsidiaries and associated 

with adjustments and reclassifications for the 

purpose of fair presentation in accordance 

with IFRS. Until the difference between the 

International Accounting Standards (IAS)/ 

International Financial Reporting Standards 

(IFRS) recognized by the European Union and 

the standards published by the International 

Accounting Standards Board (IASB) are 

announced by the Turkish Accounting 

Standards Board (TMSK), the financial 

statements are prepared in line with IAS/ 

IFRS under the Capital Markets Board (SPK) 

Communiqué Serial: XI, no: 29. The annexed 

financial statements and footnotes are 

presented according to the format required to 

be implemented by the SPK. 

Functional currency used in company’s 

operations is Turkish Lira (TL), and functional 

currency used in reporting is United States 

Dollars (USD). Financial statements and 

notes in the appendix are presented in United 

States Dollars (USD). 

1.2 Adjustment of Financial Statements 

In Hyperinflation Periods 

Under the SPK decision dated March 17, 

2005, and numbered 11/367, the inflation 

accounting practice is ended as of January 1, 

2005, for the companies operating in Turkey 

and preparing financial statements in line with 

Subsidiaries and Affiliated Companies and Their Shareholding Percentages 

Affiliates and Subsidiaries 

KTM 

Effective Rate of 

Ownership (%) 

49 

Method 

Equity Method 

TPIC 

TPBTC 

TPSCP 

TPOC 

AIOC (6.75% partner of ACG Project) 

TP MISSAN 

TP BADRA 

100 

100 

100 

100 

100 

100 

100 

Full Consolidation 






Full Consolidation

the Accounting Standards (including those 

which adapt the IAS/IFRS application). In line 

with this decision, the Standard on “Financial 

Reporting in Hyperinflationary Economies” 

(“IAS/TMS 29”) released by the IASB was not 

applied as of January 1, 2005. 

1.3 Comparison of the Previous Period 

Financial Statements 

Comparison information was classified 

for the purposes of conformation with the 

presentation of the current period financial 

statements if necessary. 

1.4 Basis of Consolidation 

Consolidated financial statements comprising 

TPAO (“Company”, “Parent Company”) and 

the partnership controlled by TPAO, have 

been prepared by considering the financial 

statements belonging to the year ending on 

31, December 2011. The subsidiaries are 

defined as the companies controlled by the 

Parent Company holding more than 50% 

of the shares and voting rights directly or 

indirectly within the scope of capital and 

managerial relations or having the right of 

electing the majority of the management or 

having the majority of the management over 

the subsidiaries. The power of control implies 

that Parent Company plays the efficient role 

over the decisions of the company (Subsidiary) 

regarding the financial and operational politics 

and the power of managing aforementioned 

politics for the purpose of benefiting from the 

operations of the pre-mentioned company. 

The companies those do not have supervision 

capability but whose 10%-50% of the shares 

controlled by the parent company are defined 

as Partnership. 

The subsidiaries and affiliated companies 

and their shareholding percentages at 31 

December 2011 are on the left page. 

The company’s shareholding percentage 

in KTM is shown in the financial statements 

by using equity method. The equity and net 

income attributable to minority shareholders’ 

interests are shown separately in the balance 

sheet and income statement, respectively. 

The losses applicable to the minority are 

charged against the minority interest, so 

as not to exceed the minority interest in the 

equity of subsidiary. As the investment in KTM 

is classified as an associated company, it is 

accounted for on equity basis. Participating 

interest acquired in KTM is accounted for 

by the equity method. The equity method is 

a method of accounting whereby an equity 

investment is initially recorded at cost and 

subsequently adjusted to reflect the investor’s 

share of the net profit or loss of the associate 

(investee). Distributions received from the 

investee reduce the carrying amount of the 

investment. The recoverable amount of an 

investment in an associate is assessed and 

if there is an indication that the carrying 

amount of the associate may be impaired 

permanently adjustment is made to state it at 

its recoverable amount. The book value of 

the investment in the capital of subsidiaries 

held by the parent company has been off-set 

against the equity of the invested companies 

and all inter-company purchase and sales and 

all accounts receivable and payable balances 

have been eliminated. 

1.5 Changes in Accounting Policies 

If the changes in accounting estimates are 

about only one term, they are applied in the 

current period when the change was made, if 

they are about future terms, they are applied 

both in the period the changes were made 

and in the future periods, prospectively. 

There have been no significant changes in 

the accounting estimates of the Group in the 

current period. 

Summary of Significant Accounting 

Policies 

2.1 Revenue 

The group’s income consists of crude oil and 

natural gas sales and the revenues of various 

55

services. The income generated by sales 

are recognized in accounting when all the 

following conditions are fulfilled. 

values of the goods sales at the end of this 

process. The service incomes are recorded 

as revenues when they are realized. 

56 

•The Group transferring all the significant 

risks and gains on property to the buyer, 

•The Group not having a proprietary and 

ongoing administrative participation and an 

efficient control over the sold goods, 

•The amount of income being measured 

reliably, 

•The flow of economic benefits about the 

transaction to the enterprise being probable, 

•The costs incurred or to be incurred by the 

transaction being measured reliably. 

Net sales are calculated by deducting sale 

returns and discounts from the invoiced sale 

amounts of goods and services delivered 

to the buyer. In case there is a significant 

financing expense in sales, the fair value is 

determined by discounting the future cash 

receipts by the implicit interest rate in the 

said financing expense. According to accrual 

principle, differences between fair values and 

the nominal values of the sales are recognized 

as interest income. 

Although the IAS 18 Revenue standard does 

not cover the revenue generated by the 

mining activities, various recommendation 

texts and the practices that are generally 

accepted in the literature show that IAS 18 

is the basic guide with regards to the time 

when revenue arises in the mining industry. 

After the production of crude oil, the company 

transports the product to the buyer through 

pipelines and in this stage the significant 

risks on the product is not transferred to the 

buyer yet. When the product is delivered to 

the buyer, it is accepted that the revenue has 

arisen since all significant risks and gains on 

the property are transferred to the buyer, in 

line with the clauses of the standard, and the 

income is recorded. 

The company income includes the invoiced 

If the collection of the amounts recorded as 

revenues becomes doubtful, the allowances 

of doubtful trade receivables are taken to 

the financial statements as expense, and 

not through the correction of the amount of 

revenue. 

2.2 Inventories 

Inventories are valued at the lower of 

cost and net realizable value. The cost of 

inventories include all costs of purchase, 

costs of conversion and other costs incurred 

in bringing the inventories to their present 

location and condition. The unit cost of the 

inventories is determined with weighted 

average cost method. Net realizable value is 

the value obtained when the total amount of 

estimated completion cost and estimated sale 

Land Improvements 

Buildings 

Machinery and Equipments* 

Motor Vehicles 

Furniture, Fixtures and Office Equipment 

Depreciation Rate 

5% - 15% 

2% 

10% - 20% 

20% 

5% - 16% 

* includes machinery and equipment used for production oil or natural gas.

57 

cost necessary to make the sale is deducted 

from the estimated sales price in the ordinary 

course of business. 

IAS 2 Inventories Standard suggests the use 

of real party cost method in the determination 

of inventory costs, when possible, and the 

use of first-in-first-out (FIFO) or the Average 

method when the real cost cannot be 

determined. The cost is determined with the 

use of weighted moving average cost method 

for first good and material, work in progress, 

merchandise and other inventories. 

2.3 Fixed Assets 

2.3.1 Tangible Fixed Assets 

The tangible fixed assets purchased before 

January 1, 2005, were reflected with the 

deduction of the accrued depreciation and 

permanent value losses from the corrected 

cost values and the tangible fixed assets 

purchased after January 1, 2005, were 

reflected with the deduction of accrued 

depreciation and permanent value losses 

from the cost values.The fixed assets that 

have been expected to be used more than one 

year, reported in first at cost of value. At the 

following periods, they are appreciated with 

cost of value. The cost value of the tangible 

fixed asset consists of purchase price, import 

taxes and non-refundable purchase taxes, 

the expenses incurred to make the tangible 

fixed asset ready to be used and the interest 

expenses incurred during the investment 

stage of the tangible fixed asset in question 

of the credits used for the purchase of the 

tangible fixed asset. 

The company has been calculated the 

depreciation by considering the useful life 

that has been denoted at the Law of Tax 

Procedures. The normal depreciation has 

been accepted as depreciation method and 

the depreciation expense has been calculated 

as prorate depreciation. 

The depreciation methods and rates that 

have been used are shown on the left row. 

At least in every end of the fiscal period, the 

depreciation rates have to be controlled. On 

the other hand, it has to be tested in case 

there is any impairment at the fixed assets. 

However, there has not been happened any 

operation and there has not been any group 

of assets. 

2.3.2 Intangible Fixed Assets 

Intangible Fixed Assets consist of special 

costs, rights and other intangible fixed 

assets. Mentioned intangible fixed assets are 

amortized in accordance with their predicted 

life-time. 

2.4 Goodwill 

In line with the Turkish Financial Reporting 

Standards (TFRS) “Business Combinations” 

as of January 1, 2005, the difference between 

the acquired identifiable assets, liabilities 

and contingent liabilities and the acquisition 

amounts are recognized as goodwill. The 

goodwill that emerges during the business 

combination is not subject to depreciation, 

instead, it is subjected to value depredation 

test once a year or when the conditions point 

to depredation more frequently.

58 

The Group does not have a goodwill account 

under the TFRS 3 “Business Combinations.” 

2.5 Impairment Of Assets 

In case the carrying values of assets exceed 

the estimated recoverable amount, the assets 

or cash-generating units are written down to 

their recoverable amount and the provision 

is reflected to the income statement as an 

expense. 

On the other hand; the recoverable amount of 

assets is the greater of net selling price and 

value in use. In assessing value in use, the 

estimated future cash flows are discounted to 

their present value using a pre-tax discount 

rate that reflects current market assessments 

of the time value of money and the risks 

specific to the asset. 

No such case is detected at the balance sheet 

period. 

2.6 Borrowing Costs 

The financing costs arising due to financial 

debts are included in the cost amount of 

qualifying assets when associated with the 

acquisition or establishment of qualifying 

assets. Qualifying assets refers to assets that 

take a substantial period of time to get ready 

for its intended use or sale. Other borrowing 

costs are recorded in the income statement in 

the period they arise. 

2.7 Financial Instruments 

Financial instruments consist of following 

financial assets and liabilities; 

Cash and Cash Equivalents 

Cash and cash equivalents comprise cash on 

hand, cash in banks and cash in transit. 

Cash on hand comprise Turkish Liras and 

foreign currency balances Turkish Liras 

balances are carried at cost, foreign currency 

balances are carried at their TL equivalent 

values calculated using the buying exchange 

rates announced by Central Bank of the 

Republic of Turkey at the balance sheet 

date. Buying rates are used for evaluating 

foreign currencies in assets and Selling rates 

are used for evaluating foreign currencies in 

liabilities. 

Bank deposits comprise time and demand 

deposits and interests of these deposits. 

Turkish Liras balances are carried at cost, 

foreign currency balances are carried at their 

TL equivalent values calculated using the 

buying exchange rates announced by Central 

Bank of the Republic of Turkey at the balance 

sheet date. 

Due to the fact that the liquid assets in foreign 

currency are exchanged to the Turkish Liras 

in effective rate in balance sheet date, the 

fair value of these assets are accepted to be 

equivalent to their registered value. Cash 

and cash equivalents in foreign currencies 

are translated to Turkish Liras using the 

exchange rates at the balance sheet date. 

Thus, fair values of these assets are accepted 

to be equal to their book values. 

Bank Deposits, checks received and 

registered value of cash are assumed to 

be equal with their fair values as they are 

disposed of in short terms and free of the risk 

of impairment. 

Fair value is the amount at any financial 

instruments, between two purchased and 

saled parts, that has been changed of hands 

as cleaned from collusion, primarily, stock 

market value of relevant asset, in case the 

lack of stock market value the purchase and 

sale value which is suitable for the definition 

is being accepted as fair value. 

Trade Receivables 

Trade receivables are financial assets 

recognized by direct sale of goods and 

services to buyers. 

Discounted and doubtful receivable provision

deducted values of trade receivables are 

assumed to be equivalent to their fair values. 

Related Parties 

At attached financial statements, scope of 

consolidated companies (directly) and the 

companies which has been controlled by 

these consolidated companies (indirectly), 

affiliates and project partners have been 

accepted as related parties. 

Short and Long Term Bank Borrowings 

and Trade Payables 

Short and long term bank borrowings are 

represented with values of principal and the 

accrued interest expenses as at balance sheet 

date, discounted by the effective interest rate. 

Trade payables are financial liabilities 

recognized by direct purchase of goods and 

services from suppliers. 

Financial Investments 

Financial Instruments driven to equity which 

do not have any registered value in active 

market and its fair value can not be measured 

certainly are reported as their cost of value. 

2.8 Provisions, Contingent Liabilities 

and Obligations 

The Group administration, reserves the 

amount of the liability in question in the 

annexed consolidated financial statements, 

in cases where there is a current legal or tacit 

liability arising from the past events, the exit 

of the resources including economic benefit 

from the business is possible for the fulfillment 

of this liability and the amount of liability in 

question can be estimated reliably. Contingent 

liabilities are subjected to continuous 

evaluation to determine whether the exit of 

the resources including economic benefit 

from the business has become probable or 

not. Except the cases where the possibility 

of the exit of resources including economic 

benefit is remote, these cases are explained 

in the footnotes of the financial statements. 

When the entry of the economic benefit to the 

business becomes probable, an explanation 

is made in the financial statement footnotes 

about the contingent asset. In case the entry 

of the economic benefit to the business 

becomes almost certain, the asset in question 

and the income change associated is included 

in the consolidated financial statements at the 

date the change takes place. 

2.9 Taxes Calculated on the Basis of 

the Company’s Earnings 

2.9.1 Corporate Tax 

In Turkey, the corporate tax applied to the 

legal tax basis, to be found with the addition of 

non-deductible expenses for the commercial 

gain of the corporations under the tax laws 

and the deduction of the exemptions under 

the tax laws, is 20%. Under the Turkish 

tax legislation, financial harms can be 

conveyed for five years to be deducted from 

the company’s profit to arise in the future. 

However, financial harms cannot be deducted 

from the profits of previous years. In Turkey, 

the practice of reaching an agreement with 

the tax authority for the tax to be paid is not 

applied. The corporate tax declarations are 

given in the fourth month following the month 

the accounting period is closed. The offices 

authorized for tax examination can examine 

the tax declarations and the underlying 

accounting records for five years subsequent 

to the accounting period and make reassessments 

in line with their findings. 

The companies subject to consolidation are 

taxed under the clauses specified in the 

agreements which have binding force above 

the laws for the projects implemented through 

these companies. 

2.9.2 Deferred Tax 

Deferred tax is accounted for using the liability 

method in respect of temporary differences 

arising from differences between the carrying 

amounts of assets and liabilities in the financial 

statements and the corresponding tax basis 

used in the computation of taxable (statutory) 

profit. Mainly, the temporary differences, the 

59

60 

gains and losses in accordance with the 

declaration of Tax Laws have been taken root 

from the accounting of the different financial 

statement periods. Deferred tax liabilities are 

generally recognized for all taxable temporary 

differences and deferred tax assets are 

recognized to the extent that it is probable 

that taxable profits will be available against 

which deductible temporary differences can 

be utilized. 

The company calculates the tax assets and 

liabilities deferred, taking into account the 

effects of temporary differences arising from 

the different evaluations between the legal 

financial statements of the balance sheet 

times under the clauses of Capital Markets 

Board Communiqué XI-29. The temporary 

differences mentioned usually arise due to 

the accounting recognition of incomes and 

expenses in different reporting periods under 

the Communiqué and tax laws. The temporary 

differences mentioned usually arises due to 

the accounting recognition of incomes and 

expenses in different reporting periods under 

the Communiqué and tax laws. 

The tax assets and the liabilities relating to 

consolidated companies have been reported 

like during the consolidation. 

Deferred tax liabilities are calculated for 

investments in subsidiaries and associates 

and for all the associated taxable temporary 

differences, except the cases when the 

Group can control the removal of temporary 

difference and the possibility of the removal 

of this difference is low in the near future. The 

deferred tax assets arising from the taxable 

temporary differences associated with such 

investments and shares are calculated on the 

conditions that benefiting from the differences 

in question is highly likely through making 

sufficient profit subject to tax in the near future 

and that the removal of differences is possible 

in the future. 

2.10 Exploration, Preparation 

and Development Expenses 

The expenses in oil exploration and production 

sector consist of four basic parts, which are: 

• Exploration Expenses 

• Acquisition Expenses 

• Development Expenses 

• Production Expenses. 

1-Exploration Expenses 

The expenses made in the process from 

the acquisition of the exploration license to 

the commercial oil discovery are generally 

considered exploration expenses. 

2-Acquisition Expenses 

The acquisition expenses are all expenses 

incurred to have the oil right. 

3-Development Expenses 

The development expenses are the expenses 

made subsequent to the acquisition of the 

field and oil exploration stages. 

4-Production Expenses 

Production expenses are expenses incurred 

in the oil production stage. 

International Financial Reporting Standards: 

6 Standard for the Exploration for and 

Evaluation of Mineral Resources covers the 

accounting recording of only the exploration 

and evaluation expenses and does not include 

the expenses incurred before the acquisition 

of the exploration license, development 

expenses and the production expenses. 

Exploration and development costs incurred 

in Turkey are charged to income statement as 

required by the Turkish Petroleum Law, while 

exploration and development expenses can 

be recognized in income statement, since the 

company has been reporting in accordance 

with IFRS, related expenses are accounted 

according to successful effort method 

explained below. Drilling costs incurred on 

both ground and underground improvements 

(platforms, pipelines and similar items) as

well as expenditure on machinery, equipment 

and other fixed assets related to the oil and 

gas production activities are capitalized and 

depreciated as required by the circumstances. 

The amounts paid for the investments and 

interest in joint operation agreements are 

capitalized and are amortized on basis of the 

income following the discovery of petroleum, 

in the case where no petroleum is available 

the remaining balance of the investment and/ 

or the interest in joint operation agreements 

are written off to expenses. 

61 

Drilling materials such as “casing” is put into 

accounts due to consequences of research 

activities. If proved reserves are found at the 

well, casing cost is capitalized and amortized 

but if the well is dry it is written off as expense. 

2.11 Petroleum Accounting 

Successful Effort Method 

The basic assumption in this method is the 

capitalization of pre-production expenses with 

the discovery of producible oil reserves and 

its reflection to the inventoriable cost through 

depreciation. In other words, in the Successful 

Effort Method, pre-production expenses 

are associated with the inventoriable cost if 

success is achieved in the exploration activity. 

The pre-production expenses incurred 

for unsuccessful exploration activities are 

accepted as period expenses and are 

reflected directly in the income statement. In 

the Full Cost Method, which is an alternative 

to this method, the pre-production exploration 

and evaluation expenses are capitalized 

and subjected to depreciation regardless of 

whether the result was successful or not. 

The Company recognizes the petroleum 

research and development costs in 

accordance with successful effort method. 

Development expenses are the expenses 

incurred in order to accelerate the production 

of petroleum or natural gas. In case these 

operations do not achieve the objective, the 

amounts should be capitalized. 

The petroleum exploration and development 

expenses capitalized in case of finding 

reserves are subject to depletion by 

redemption rate found by dividing the actual 

production to beginning period total estimated 

reserve amount. 

Estimation of Oil and Gas Reserves 

Proved oil and gas reserves which are the 

key elements of the Group’s operations are 

the estimated quantities of crude oil and 

natural gas which geological and engineering 

data demonstrate in reasonable certainty 

to be recoverable in the future years from 

known reservoirs under existing economic 

and operating conditions. Proved developed 

reserves are reserves that can be expected 

to be recovered through existing wells with 

existing equipment and operating methods. 

The estimation of oil and gas reserves are 

based on the Company Managements 

assumptions and expectations. 

2.12 Asset Retirement Obligations 

The fair value of well abandonment liability is 

recorded as a liability when incurred, typically 

at the time the assets are installed or placed 

in service. Amounts recorded for the related 

assets are increased by the amounts of these 

obligations. Over time the liabilities will be

62 

increased for the change in their present 

value and the initial capitalized costs will 

be depreciated over the useful lives of the 

related assets. 

2.13 Employee Termination Benefits 

Defined Contribution Plans 

According to existing social legislation 

applied in Turkey, the employee deserves 

claim as severance of the employee except 

to quit job as a reason of resignation and right 

reasons and to charge 1 year at work. The 

Company is calculating the existing liability 

as appropriate. The liability is discounted 

to present value using the effective interest 

rate. All actuarial gains and losses arising 

from said calculations are recognized in the 

income statement. 

Under the updated IAS 19 Employee Benefits 

Standard the payments of the type in question 

are identified as defined retirement benefit 

plans. The termination benefit recognized 

in balance sheet liability was calculated 

according to the net current value of the 

amounts of liability expected to arise in the 

future as a result of the retirement of all 

employees and was reflected in the financial 

statements. All actuarial gains and losses 

calculated were reflected in the income 

statement. 

Defined Benefit Plans 

For defined contribution plans, the Company 

pays contributions to publicly administered 

Social Security Funds on a mandatory basis. 

These payments are decisive. 

2.14 Cash Flow Statement 

The cash flows of the period are reported 

through classification based on main, 

investment and financing activities in the 

cash flow statements. Indirect method is 

chosen for cash flow preparation method. It 

was prepared with the same method in the 

previous period. 

The cash flows arising from main activities 

show the cash flows arising from the Group’s 

crude oil, natural gas sales and technical 

service activities. The cash flows related 

with investment activities show the cash 

flows used and acquired by the Group in 

investment activities (fixed investments and 

financial investments). Cash flows related 

with financing activities show the resources 

used by the Group in financing activities and 

the repayments of these resources. Liquid 

assets are available cash, demand deposits 

and other short-term investments with high 

liquidity, which have 3 months or less than 3 

months due date as of their purchase date, 

can be liquidated immediately and do not 

have the risk of significant value change. 

2.15 The Effects of Changes In Foreign 

Exchange Rates 

In the process of the reporting of consolidated 

financial statements of the company in U.S. 

Dollars (USD), since the official records of 

foreign associates are realized in USD, there 

is no foreign exchange rate difference. 

Only the official records and financial 

statements of the TPAO Headquarters and 

Regional Directorates and the TPPD among 

the companies under consolidation, which 

is the subsidiary of TPIC, are reported in 

Turkish Lira (TL). The foreign exchange rate 

differences that arise when the mentioned 

TL financial statements is converted to the 

USD, which is the reporting currency, were 

classified as equity capital and transferred to 

the Group’s conversion fund. 

The conversion differences in question are 

recorded to the income statement in the 

period when the foreign activity is disposed 

of. 

In the conversion of the mentioned TL records 

to USD, the year-end exchange rate is used for 

balance sheet items and average exchange 

rate is used for revenue and expenditure 

items. The USD/TL exchange rates in related 

dates are as follows.

mentioned in (d) or (e) has a significant right 

to vote directly or indirectly; or 

(g) The Party should have benefit plans 

provided following the termination of work 

for the employees of the enterprise or an 

enterprise that is an associated party of the 

enterprise. 

The transactions with related parties is 

the transfer of the resources, services 

or liabilities between the related parties, 

regardless of whether or not this is against 

any remuneration. 

63 

2.17 Earning Per Share 

2.16 Related Parties 

If one of the criteria listed below is fulfilled, the 

party is considered related with the Group: 

(a) If the party in question either directly or 

indirectly, through one or more than one 

intermediaries: 

(i)Controls the Group, is controlled by the 

Group or under the joint control with the 

Group (including parents, subsidiaries and 

subsidiary companies in the same business 

field); 

(ii)Has a share that enables it to have a 

significant influence over the Group; or 

(iii)Has joint control over the Group; 

(b) If the Party is an associate of the Group; 

(c) If the Party is a joint venture in which the 

Group is a joint venturer; 

(d) If the Party is member of the Group’s or its 

parents’ key administrative personnel; 

(e) If the Party is a close family member of 

any individual mentioned in (a) or (d); 

(f) If the Party is an enterprise that is 

controlled, under joint control, or under 

significant influence or where any individual 

The earning per share indicated in the income 

statement is found with the division of net 

profit with the weighted average number of 

the equity shares in the market during the 

reporting period. 

2.18 Post Balance Sheet Events 

Post balance sheet events cover all the 

events between the balance sheet date and 

the date the balance sheet was authorized to 

be published, even if they took place following 

the public disclosure of any announcements 

with regards to the profit or other selected 

financial information.In the case that events 

requiring a correction to be made occur 

subsequent to the balance sheet date, the 

Group makes the necessary corrections to 

the financial statements. When non-adjusting 

events occur after balance sheets date, the 

Group makes the necessary disclosures in 

the relevant period. 

2.19 Contingent Assets And Liabilities 

A contingent asset/contingent liability is a 

possible asset/obligation that arises from past 

events and whose existence will be confirmed 

only by the occurrence or non-occurrence of 

one or more uncertain future events not wholly 

within the control of the entity. The Company 

doesn’t recognize contingent assets and 

liabilities.

TPAO and its Subsidiaries Consolidated Balance Sheets as of 

December 31, 2011 and December 31, 2010 

thousand USD* 

Assets 

2011 2010 

64 

Current Assets 

2,740,446 

2,793,155 

Cash and Cash Equivalents 

1,282,750 

1,998,505 


- 

- 

Trade Receivables 

402,798 

268,267 

Other Receivables 

47,212 

8,044 

Inventories 

857,397 

308,067 

Other Current Assets 

150,289 

210,272 

Non-Current Assets 

4,488,192 

4,213,976 

Other Receivables 

91,226 

93,701 


2,870 

51 

Investments Evaluated with Equity Method 

24,968 

26,102 

Wells 

1,046,372 

1,017,207 

Tangible Assets 

3,118,750 

2,812,543 

Intangible Assets 

127,812 

174,177 

Deferred Tax Assets 

635 

11,537 

Other Non-Current Assets 

75,559 

78,658 

Total Assets 

7,228,638 

7,007,131

TPAO and its Subsidiaries Consolidated Balance Sheets as of 

December 31, 2011 and December 31, 2010 

thousand USD* 

Liabilities 

2011 2010 

Short-Term Liabilities 

716,689 

1,014,894 

65 

Financial Liabilities 

210,676 

208,737 

Trade Payables 

236,618 

133,722 

Other Liabilities 

101,179 

428,117 

Tax Liability 

32,210 

26,534 

Other Short-Term Liabilities 

136,006 

217,784 

Long-Term Liabilities 

761,703 

651,585 

Financial Liabilities 

24,160 

33,524 

Other Liabilities 

99 

51 

Debt Provisions 

474,457 

353,974 

Provisions for Employee Termination Benefits 

95,946 

113,801 

Deferred Tax Liabilities 

29,313 

- 

Other Long-Term Liabilities 

137,728 

150,235 

Shareholders’ Equity 

5,750,247 

5,340,652 

Shareholders’ Equity of Parent Company 

5,750,247 

5,340,652 

Paid-in Capital 

980,349 

980,349 

Foreign Exchange Differences 

-794,594 

151,662 

Profit Reserves 

1,405,224 

1,064,255 

Retained Earnings/Loss 

2,724,736 

1,791,570 

Net Income / Loss for the Period 

1,434,532 

1,352,816 

Total Liabilities 

7,228,639 

7,007,131 

* 2010 exchange rate for USD is 1.5460 TL and for 2011 it is 1.8889 TL.

TPAO and its Subsidiaries Consolidated Income Statement for 

the year ended December 31, 2011 and December 31, 2010 

thousand USD* 

2011 

2010 

Sales Income 

3,295,138 

2,850,823 

66 

Cost of Sales (-) 

1,536,637 

1,424,624 

Gross Profit (Loss) 

1,758,501 

1,426,199 

Marketing and Sales Expenses (-) 

74,949 

123,291 

General Administrative Expenses (-) 

213,068 

235,683 

Research and Development Expenses (-) 

230,614 

166,395 

Other Operating Revenues (-) 

82,091 

269,630 

Other Operating Expenses (-) 

188,467 

139,880 

Operating Profit (Loss) 

1,133,494 

1,030,580 

The Investment’s Shares in Gains/Losses 

3,324 

1,545 

Non-operating Financial Revenues 

966,801 

772,038 

Non-operating Financial Expenses (-) 

362,611 

288,073 

Continued Operations Before Tax Profit (Loss) 

1,741,007 

1,516,090 

Continued Operation of Tax Profit (Loss) 

306,476 

163,274 

Tax Losses for the Period 

268,319 

177,269 

Deferred Tax Gains (Losses) 

- 38,157 

13,994 

Net Income (Loss) 

1,434,532 

1,352,816 

* 2010 exchange rate for USD is 1.5265 TL and for 2011 it is 1.7175 TL.

Financial Ratios Derived from Consolidated 

Financial Statements of TPAO for 2011 

Current Ratio (Working Capital Ratio) = 7.34 

Acid- Test Ratio = 4.49 

67 

Liquidity Ratio (Liquid Assets Ratio) = 3.91 

Financial Leverage = 0.12 

The Ratio of Equity to Total Assets = 0.88 

The Ratio of Equity Capital to Liabilities = 7.21 

Gross Sales Revenue / Net Sales Revenue = 0.68 

Net Profit / Asset Ratio = 0.22

contact 

information 

68 

headquarters 

Turkish Petroleum Corporation 

Söğütözü, 2180 th Avenue No: 86 

06100 Çankaya - Ankara / TURKEY 

Phone: +90 312 207 20 00 

Fax: +90 312 286 90 00 - 286 90 01 

e-mail: tpaocc@tpao.gov.tr 

web: www.tpao.gov.tr 

tpao’s district 

managements 


72100 Batman / TURKEY 

Phone: +90 488 213 27 10 

Fax: +90 488 213 41 49 - 213 39 14 

Thrace District Management 

39750 Lüleburgaz 

Kırklareli / TURKEY 

Phone: +90 288 417 38 90 

Fax: +90 288 417 22 03 


02040 Adıyaman / TURKEY 

Phone: +90 416 227 28 11 

Fax: +90 416 227 28 07 - 18 

tpao’s subsidiary 

TPIC, Turkish Petroleum 

International Company 

Söğütözü Avenue No: 27 

06520 Ankara / TURKEY 

Phone: +90 312 285 44 55 

Fax: +90 312 285 38 09 

e-mail:tpican@tpic.com.tr 

tpao’s international offices 

Azerbaijan TPAO / TPOC / TPBTC Office 

340 Nizami Street, 370000 ISR Plaza, 4 th Floor 

Baku / AZERBAIJAN 

Phone: +99 412 498 95 26 - 493 14 98 

Fax:+99 412 498 14 35 

e-mail: info@tpao-az.com 

TPOC Libya Office 

Tripoli Tower 1, 10 th Floor, No: 101 

Tripoli / LIBYA 

Phone: +218 21 335 14 94 - 335 14 96 - 97 

Fax: +218 21 335 14 95 

e-mail: tpoc@tpoclibya.com 

TPOC Iraq Office 

Baghdad Al – Wazereyah 301 Section 5 th St. 

No: 6 Baghdad / IRAQ 

Phone: +90 312 207 20 00 / 18 58 - 18 59 

e-mail: kyunus@tpao.gov.tr 

TPOC East Mediterranean Office 

Şht. Ecvet Yusuf Avenue No: 44/A 

Yenişehir, Lefkoşa, TRNC 

Phone: +90 533 825 20 40 

e-mail: sgorgun@tpao.gov.tr 

KazakTurkMunai Ltd. Joint Company 

Business Center “Okan Inter-Continental” 

Abay Avenue, 113, 473000, 

Astana / KAZAKHSTAN 

Phone: +7 7172 39 10 25 

Fax: +7 7172 39 10 26 

e-mail: ktm@aktm.kz

5 - TPAO

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?