ExxonMobil Corporation (XOM) and Petrobras (PBR) through their affiliates entered into an agreement with Turkish National Oil Company, Türkiye Petrolleri Anonim Ortaklığı (hereafter, TPAO) to explore hydrocarbons in the deepwater Black Sea offshore Turkey.
As per the agreement, Exxon and Petrobras will each have a 25% stake in the Sinop, Ayancik and Çarsamba sub-blocks of the AR/TPO/3922 exploration license. TPAO holds the remaining 50% interest.
This agreement covers approximately 7.4 million acres and subject to approval by the Turkish Government. It is based on an earlier agreement signed between Exxon and TPAO in November 2008. As per the terms of the old agreement, Exxon is slated to earn a 50% interest in the Samsun Block (which measures approximately 8,500 square kilometers) and the eastern portion of 3921 Block (which measures approximately 21,000 square kilometers).
TPAO expects the Black Sea yield to be as much as 10 billion barrels of oil and 1.5 trillion cubic meters of natural gas. With a 10-year average replacement ratio of 110% (as of December 31, 2008), Exxon continues to replace its annual production with new and quality reserve additions, thereby extending a positive trend of replacing more barrels than it produced.
Exxon’s leading position in the oil industry reflects the size and diversity of its asset base, both in terms of business mix as well as geographical footprint.
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