CRUDE OIL and NATURAL GAS PIPELINES IN TURKEYenergylawgroup.eu/itrfile/_1...Confidential 1 7 l s t Law. Constructed and being operated in Non-Transit Crude Oil and Natural Gas Pipelines

CRUDE OIL and NATURAL GAS PIPELINES IN TURKEY

Okan Demirkan, Esq.

Warsaw, 22 September 2017

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Content

I. Classification of Pipelines

II. Transit Pipelines

III. Non-Transit Pipelines

IV. Why an IGA and/or HGA for both Transit and Non-Transit Pipelines?

V. Israel-Europe Natural Gas Pipeline: What is the Proposed Route?

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Classification of Crude Oil and Natural Gas Pipelines

National Natural Gas Transmission System and Crude Oil Pipelines

• National Natural Gas Transmission System

• Ceyhan – Kırıkkale Crude Oil Pipeline

• Batman – Dörtyol Crude Oil Pipeline

International Crude Oil and Natural Gas Pipelines

• Transit Crude Oil and Natural Gas Pipelines

• Non-Transit Crude Oil and Natural Gas

Pipelines

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International Pipelines Entering, Exiting or Transiting Turkey

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Transit Pipelines and Projects in Turkey

Project

Baku – Tbilisi – Ceyhan Crude Oil Pipeline (BTC)

Transit Law IGA dated 18 November 1999 HGA dated 18 November

1999 – the HGA’s unsigned version was attached to the IGA

In operation 1.2 million barrels per day

Trans Anatolian Natural Gas Pipeline (TANAP)

Transit Law IGA dated 26 June 2012 HGA dated 26 June 2012 –

the HGA’s signed version was attached to the IGA

Under construction (expected to be commissioned in 2018)

16 to 31 bcm per annum

TurkStream Gas Pipeline Transit Law IGA dated 10 October 2016

Under construction (expected to be commissioned by late 2019)

31.5 bcm per annum

Legal Regime Status Capacity

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Legal Regime Applicable to Transit Crude Oil and Natural Gas Pipelines

Between June 2000 – June 2013

After June 2013

Tim

e

Pe

rio

d

Le

gis

lati

on

Between June 1957 – June 2000

Article 83 of former Petroleum Law

Article 83 of former

Petroleum Law Transit Law

Council of Ministers’ Decree Council of Ministers’

Decree

IGA

HGA

Other Project Agreements

and

and

Transit Law

IGA

and

HGA

and

Other Project Agreements

Le

ga

l R

eg

ime

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Non-Transit Crude Oil and Natural Gas Pipelines

Legal Regime:

Russia – Turkey Natural Gas Pipeline

Status Capacity

IGA dated 15 December 1997 Protocol dated 27 November 1999

Blue Stream Natural Gas Pipeline

In operation 16 bcm per annum

Constructed and being operated in the absence of an international agreement

Iran – Turkey Natural Gas Pipeline

In operation 14 bcm per annum

IGA dated 12 March 2001 Baku – Tbilisi – Erzurum

Natural Gas Pipeline In operation 20 bcm per annum

IGA dated 23 February 2003 Interconnector Turkey –

Greece (ITG) In operation

3 bcm per annum (maximum capacity: 11 bcm per annum)

IGA dated 27 August 1973 Addendum dated 30 July 1985 Amendment Agreement dated 19 September 2010

Kirkuk – Ceyhan Crude Oil Pipeline

In operation 70.9 million tons per annum

IGA dated 18 September 1984 In operation – This pipeline will be replaced by the TurkStream

14 bcm per annum Russia – Turkey

Natural Gas Pipeline

Blue Stream Natural Gas Pipeline

Iran – Turkey Natural Gas Pipeline

Baku – Tbilisi – Erzurum Natural Gas

Pipeline

Interconnector Turkey – Greece (ITG)

Kirkuk – Ceyhan Crude Oil Pipeline

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Legal Regime Applicable to Non-Transit Pipelines

There is no specific law dealing with non-transit crude oil and natural gas pipelines.

The completed non-transit crude oil and natural gas pipelines were constructed under the auspices of different legal instruments.

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Why an IGA and/or HGA for both Transit and Non-Transit Pipelines?

There is no specific law dealing with non-transit crude oil and natural gas pipelines.

IGA and/or HGA create the lex specialis for the relevant pipeline

The completed non-transit crude oil and natural gas pipelines were constructed under the auspices of different legal instruments.

Article 90 of the Turkish Constitution

Lex specialis derogate legi generali

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The Israel – Europe Natural Gas Pipeline: What is the Proposed Route?

The proposed Israel – Europe Natural Gas Pipeline follows the route from Israel to Italy through Cyprus and Greece.

However, Turkey and Israel have been discussing construction of another natural gas pipeline from Israel to Turkey under the auspices of an international

agreement.

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Your questions

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