Turkey eyes higher pipeline revenues; considers tanker sanctions

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, May 26 -- The Turkish government, taking up an earlier idea proposed by Russia, is considering legislation aimed at applying heavy sanctions on oil companies in the event of tanker accidents in the congested Bosporus Strait.

Ankara is using the proposed legislation as part of an effort to divert tanker traffic away from the Bosporus and promote use of oil pipelines instead. Ankara is said to be discussing the legislation with Chevron Corp., ExxonMobil Corp., BP PLC, Total SA, and Eni SPA.

Earlier this month, Russia’s Izvestia newspaper reported that Moscow also had proposed clearing Turkey’s Black Sea straits of oil tankers and transporting oil via two pipelines, now under construction.

Izvestia said the idea is to “clear the Bosporus and Dardanelles straits, which serve as the boundary between Europe and Asia, and send oil via the Russia-backed Burgas-Alexandroupolis and the Turkish Samsun-Ceyhan oil pipelines.”

The Burgas–Alexandrupolis line will transport Russian oil from Bulgaria’s Black Sea port of Burgas to Greece’s port of Alexandrupolis. Transneft and Russian oil majors Gazprom Neft and Rosneft jointly hold 51% in the project.

The Samsun–Ceyhan line is expected to link the Black Sea port of Samsun with the Mediterranean port of Ceyhan, both in Turkey. Transneft and Rosneft are expected to hold stakes in the line.

Transneft also has suggested that the straits be used only to ship petroleum products while crude can be carried along the two pipelines.

Changed approach
According to analyst IHS Global Insight, Russia formerly opposed Turkish wishes to divert oil from the straits but has changed its approach.

Now, the analyst says, Russia wants to “divert crude oil shipments from exiting the Black Sea via the Bosporus while angling to control the pipelines from which this oil is exported.”

In March, Turkish Energy and Natural Resources Minister Taner Yildiz said his country needs the Samsun-Ceyhan oil pipeline that will extend across its territory to ease the traffic-clogged straits of Bosporus and Dardanelles.

“We are interested in the issues related to the transportation of Russian and Kazakh oil across the pipeline,” said Yildiz. “It is important for us that the oil is pumped across the pipeline and the traffic congestion in straits is eased.”

Yildiz’s remarks followed earlier observations by Transneft Vice-Pres. Mikhail Barkhov, who said the Samsun–Ceyhan and Burgas–Alexandrupolis oil line projects could become profitable if Turkey restricted the tonnage of tankers passing through the straits to 60,000 tonnes.

In early May, Russia’s President Dmitry Medvedev and Turkey’s Prime Minister Recep Tayyip Erdogan, eyeing the Middle Eastern country as a strategic energy hub, signed several agreements, including one on nuclear energy and another on the proposed Samsun-Ceyhan pipeline.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

Quicksilver Canada gets LNG export approval

07/02/2015 Quicksilver Resources Canada Inc. has received approval from the National Energy Board of Canada to export 20 million tonnes/year of LNG from a pos...

Origin lets contract for Otway basin fields

07/02/2015 Origin Energy Ltd., Sydney, has let a $1.3 million (Aus.) contract to Wood Group Kenny for provision of a detailed engineering design for the onsho...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

Shell makes FID on Appomattox deepwater development in Gulf of Mexico

07/01/2015 Royal Dutch Shell PLC has taken a final investment decision (FID) on the Appomattox deepwater development, authorizing construction and installatio...

Woodside-led Browse FLNG venture enters FEED phase

07/01/2015 The Woodside Petroleum Ltd.-led Browse LNG joint venture has entered the front-end engineering and design phase for a floating LNG (FLNG) developme...

Case for Keystone XL has grown stronger, TransCanada tells Kerry

06/30/2015 Canada is taking strong steps toward combating climate change, and the proposed Keystone XL pipeline crude oil pipeline remains in the US national ...

Construction begins on Chinese section of Russia-China Gas Pipeline


Construction has begun on the Chinese section of the Russia-China Gas Pipeline, according to China National Petroleum Corp.

White Papers

Definitive Guide to Cybersecurity for the Oil & Gas Industry

In the Oil and Gas industry, there is no single adversary and no single threat to the information tech...

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by
Available Webcasts

Better Data, Better Analytics, Better Decisions

When Tue, Oct 27, 2015

The Oil & Gas industry has large amounts of data stored in multiple systems which are purpose built for certain tasks. However, good decisions require insights based upon the data in all of these systems. These systems in turn do not talk to each other. So the process of analyzing data, gaining insights, and making decisions is a slow one and often a flawed one. Good decisions require accurate analytics and accurate analytics require superior/sustainable data quality and governance. This webinar focuses on:

  • The importance of data quality and governance
  • How technological advances are making data quality and governance sustainable in order to get the accurate analytics to make solid decisions.

Please join us for this webcast sponsored by Seven Lakes Technologies and Noah Consulting.


Operating a Sustainable Oil & Gas Supply Chain in North America

When Tue, Oct 20, 2015

Short lead times and unpredictable conditions in the Oil & Gas industry can create costly challenges in supply chains. By implementing a LEAN culture of continuous improvement you can eliminate waste, increase productivity and gain end-to-end visibility leading to a sustainable and well-oiled supply chain.

Please join us for this webcast sponsored by Ryder System, Inc.


On Demand

Leveraging technology to improve safety & reliability

Tue, Sep 22, 2015

Attend this informative webinar to learn more about how to leverage technology to meet the new OSHA standards and protect your employees from the hazards of arc flash explosions.


The Resilient Oilfield in the Internet of Things World

Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected