Kabul, Afghanistan and Istanbul, Turkey – November 19, 2015 – The Afghanistan Ministry of Mines and Petroleum announced today the successful conclusion of Hydrocarbon Tender Agreement negotiations with a consortium of energy companies: Türkiye Petrolleri, Bayat Energy and Calik Enerji Sanayi ve Ticaret A.S., (the “Consortium”). Upon approval of the agreement by Afghanistan’s Cabinet, the Consortium may begin natural gas exploration and production activities in the Totimaidan Block located within Afghanistan’s Faryab and Jawzjan Provinces, long regarded as one of Central Asia’s most promising potential sources of natural gas.
Following the negotiations in Kabul, the final stage of discussions between the Consortium partners and Dr. Daud S. Saba, the Afghan Minister of Mines and Petroleum, was completed during The Atlantic Council’s Energy and Economic Summit held on November 18-20 in Istanbul, Turkey. The exploration tender will be signed by the Consortium and The Ministry of Mines and Petroleum in Kabul later this month. The agreement will then be submitted to the Afghan Cabinet for final approval in December.
“The finalization of negotiations for the Totimaidan Block’s Exploration and Production Sharing Contract (EPSC) is an exciting step forward,” said Dr. Daud S. Saba, Afghanistan’s Minister of Mines and Petroleum. “The Consortium’s collective operational oil and gas experience and Afghan understanding makes the Consortium a responsible partner for our nation. We have reached a favorable and equitable agreement that will create jobs and revenue for our country, while decreasing our need to import energy,” Minister Saba said.
“Through our oil and gas services contracts, Türkiye Petrolleri has been one of the most active companies involved in developing Northern Afghanistan’s economy,” said Mr. Besim Sisman, CEO and President of Türkiye Petrolleri. “The Totimaidan project will connect Afghanistan to the region’s energy community and show the world that Afghanistan is indeed, open for business. We are pleased to contribute to Afghanistan’s energy independence,” he added.
“We are proud to partner with regional leaders Türkiye Petrolleri and Calik Enerji, to develop the Totimaidan Block’s tremendous hydrocarbon resources,” said Dr. Ehsanollah Bayat, Chairman and Founder of Bayat Energy. “Developing Totimaidan’s natural gas reserves will provide Afghanistan with both energy independence and export markets, help restore our domestic gas-to-power industry and develop our nation’s economy. We look forward to working with the Afghan government and people in our mission to create jobs and opportunities which benefit the entire nation,” Dr. Bayat stated.
“Calik Enerji has long been involved in Central Asia’s energy sector,” said Mr. Ahmet Calik, Chairman and Founder of Calik Enerji. “We’re proud to be a part of the Consortium which will work with the Afghan government and people to help Afghanistan regain its position as an important regional energy producer and exporter.”
Turkey’s national oil company brings 61 years of hydrocarbon exploration, drilling, production, underground gas storage, pipeline and marketing experience, including five years of experience in Afghanistan, some of which is in the Sheberghan gas fields. Headquartered in Ankara with nearly 5,000 employees worldwide, Türkiye Petrolleri (TP) http://www.tp.gov.tr has had an average daily production of above 100,000 boe/day. TP has extensive international experience, with projects in Libya, Azerbaijan, Iraq, Russia and Afghanistan and domestically branching out into a wider business portfolio including unconventional resources, specifically centered Thrace and southern eastern Anatolia. TP is also the shareholder of Baku-Tbilisi-Ceyhan (BTC) and Southern Caucasus Pipeline (SCP) projects. Operated by Turkish Petroleum, the Silivri Natural Gas Storage project in Turkey, the only and first underground natural gas storage facility in the country with 1.6 billion cubic meters capacity, eliminates seasonal risks and improves national energy supply security.
Part of The Bayat Group www.bayat-group.com, Bayat Energy is owned by Mr. Ehsanollah Bayat, one of the largest private American investors in Afghanistan. The Bayat Group’s businesses include Afghan Wireless and Ariana Television & Radio, and Mr. Bayat has been recognized nationally and internationally for his committed efforts to connect Afghans through mobile telephony, broadband services, and balanced radio & television programming, as well as, his significant humanitarian contributions made by the non-profit Bayat Foundation. The Bayat Group has more than thirteen years of experience developing and monetizing new markets and is prepared to do the same in Afghanistan’s gas fired power industry, both in the upstream sector as well as in the mid- and downstream with other Afghan and international investors.
Part of the expansive Çalık Holding Group, Çalık Enerji was established in 1998 and has extensive oil and gas exploration activities in Turkey, Iraq, Afghanistan and Turkmenistan (notably in the South Yolöten Gas Field). Of particular note is Çalık’s experience in drilling more than 27 ultra deep, high-pressure, subsalt wells in Turkmenistan and its existing familiarity with the Amu Darya basin. Çalık also has constructed power plants in Turkey, Iraq, Uzbekistan, Libya and Turkmenistan and possesses skills for power systems (generation, transmission, distribution) and oil and gas processing facilities (treatment, compression, flow, storage).
The Atlantic Council promotes constructive leadership and engagement in international affairs based on the Atlantic Community's central role in meeting global challenges. The annual Atlantic Council Energy & Economic Summit aims to build bridges in a region spanning from Central Asia to Central Europe and the Levant by convening an influential constituency to foster and strengthen transatlantic engagement on energy, economic, and political challenges.