Finally it happened! After years of research and hard work, it is envisaged that Turkey has reached vast hydrocarbon resources in the Black Sea – well, for the time being at least. But how about necessary investments to actually pump the gas to existing pipelines? Is it going to be cheap? Or will the project be feasible altogether for that matter?
The answer is, Yes. Luckily for Turkey we must add, the downturn of energy prices exaggerated by the corona Pandemic has led to a substantial decrease in necessary investments especially for such deep-sea drilling works. For instance, the world’s biggest offshore rig owner, Valaris Corporation has declared bankruptcy just a couple of days ago, joining (once rivals) Noble Corp. and Diamond Offshore Drilling Inc. This means lots of complex and very expensive oil rigs, plant and equipment are available now for investors such as Turkey – which is a true bargain! A well-managed procurement strategy (like followed in procurement of the drilling / exploration ships) will definitely reduce the cost of the Black Sea gas and render the project feasible.
Moreover, given that Turkey imports approximately $40 billion worth energy every year, even for budget deficit and strategic purposes the Black Sea gas might be feasible.