A new era of oil extraction in Türkiye: Strategic partnership with American companies
By Asif Aydinly
A significant step towards Türkiye's energy independence was taken during the CERAWeek 2025 energy conference: the state-owned oil company Turkish Petroleum (TPAO) signed a joint venture agreement with American firms Continental Resources and TransAtlantic Petroleum. The deal, aimed at developing unconventional oil and gas resources in Diyarbakır Province, could mark a milestone for the country’s oil and gas sector and strengthen its energy security.
Key aspects of the agreement
Source: Türkiye's Ministry of Energy
The agreement between TPAO, Continental Resources, and TransAtlantic Petroleum encompasses not only the exploration and production of unconventional hydrocarbons but also the integration of advanced technologies to reduce the environmental footprint and enhance extraction efficiency. Türkiye’s Minister of Energy and Natural Resources, Alparslan Bayraktar, emphasized that this collaboration will attract fresh investments into the country's energy sector while also facilitating the transfer of technical expertise—thereby strengthening local workforce capabilities and improving industry competencies.
Partnering with American companies experienced in developing complex fields presents Türkiye with new opportunities. Continental Resources is one of the largest oil producers in the United States, specializing in shale hydrocarbon extraction, while TransAtlantic Petroleum has been operating in the region for 17 years. This alliance will allow for the application of cutting-edge drilling and extraction methods, reducing development costs and increasing the profitability of challenging oil fields.
Additionally, the deal involves the active adoption of digital technologies and automation in production processes. This includes the use of artificial intelligence (AI) and machine learning in geological exploration, significantly improving the accuracy of oil and gas reserve assessments while minimizing risks associated with the development of hard-to-recover fields.
Long-awaited development of Eastern oil fields
Source: Daily Sabah
Plans to explore unconventional resources in Diyarbakır were first revealed in February 2024. However, for many years, fields in eastern and southeastern Türkiye remained out of reach due to the region’s challenging terrain and high extraction costs. Now, thanks to technological advancements and proactive government policies, Türkiye has the opportunity to fulfill its ambitions in the energy sector and substantially expand domestic hydrocarbon production.
Previously, hydrocarbon extraction in these areas was deemed economically unviable, but Türkiye’s drive to reduce its dependence on oil and gas imports has made the development of local fields a national priority. The country spends substantial sums annually on importing energy resources, making energy security a strategic imperative. Analysts estimate that the successful development of eastern Türkiye’s oil fields could reduce the country’s crude oil imports by at least 20% over the next decade, positively impacting Türkiye’s balance of payments.
Moreover, the expansion of the oil industry in the region has the potential to create thousands of new jobs, stimulating economic growth and reducing unemployment. The influx of foreign investments and advanced technologies into this sector is also expected to benefit related industries, including transportation infrastructure, petrochemicals, and oil and gas services.
Strategic goal: Energy independence
Source: TRENDS Research & Advisory
Türkiye is actively developing its energy infrastructure, investing in exploration and production projects for both oil and natural gas. Recent Black Sea discoveries have already become a key part of Türkiye’s resource diversification strategy. Now, the focus has shifted to onshore unconventional reserves. Collaboration with Continental Resources and TransAtlantic Petroleum could serve as a catalyst for further domestic resource development, helping Türkiye reduce its reliance on foreign energy suppliers.
The agreement underscores Türkiye’s long-term vision for achieving energy sovereignty. Beyond economic gains, the partnership will facilitate the implementation of state-of-the-art technologies, aligning with the global trend toward sustainable energy production. The adoption of low-impact extraction techniques represents a crucial step in Türkiye’s transition toward greener oil and gas operations.
Thus, the TPAO-Continental Resources-TransAtlantic Petroleum deal is not just a milestone for Türkiye’s oil and gas sector—it is a strategic investment in national energy security. The development of unconventional oil fields in Diyarbakır could become a model for the successful integration of modern technologies into hydrocarbon extraction, strengthening Türkiye’s position in the global energy market and enhancing economic resilience in an era of global energy challenges.
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