Sakarya Phase 1

Location

The Sakarya gas field is situated within the Turkish exclusive economic zone (EEZ) in the western Black Sea, approximately 165-175 km offshore from Eregli, Zonguldak, at a water depth of about 2,200 meters.

Discovery and Exploration

The field was discovered in August 2020 through the Tuna-1 ultra-deepwater exploration well, drilled by Turkish Petroleum's (TPAO) sixth-generation ultra-deepwater drillship Fatih. The well reached a total depth of 4,525 meters and intercepted a natural gas-bearing reservoir of more than 100 meters in Pliocene and Miocene sandstone formations.

Project Details

Phase 1 Development

• Operator and Owner: Turkish Petroleum Corporation (TPAO) holds a 100% interest in the block.
• Production Start: The project began commercial production in 2023.
• Wells: Phase 1 involves the drilling of 10 production wells, with five of these wells producing gas from the start.
• Production Capacity: The daily production capacity is expected to reach up to 10 million standard cubic meters (Mcm) per day, translating to an annual production of 3.5 billion cubic meters (bcm) or 350 million cubic feet per day (mmcfd).
• Infrastructure: The project includes a subsea gas production system, a 16-inch (40.64 cm) diameter carbon steel pipeline to transport gas onshore, and a gas processing terminal in Filyos.

Reserves

• The Sakarya gas field is estimated to hold significant natural gas reserves, with total potential reserves of around 540 billion cubic meters (bcm) or 11 trillion cubic feet (tcf) of lean gas.

Employment and Economic Impact

• The construction phase of the offshore section of the project is planned to employ up to 1,900 people.
• The project is expected to meet the natural gas needs of approximately 2.5 million households and will significantly reduce Turkey's energy import bill, which was $97 billion in 2022.

Technical and Logistical Aspects

Drilling and Appraisal

• The Tuna-1 well, along with subsequent appraisal wells such as Turkali-1, Turkali-2, Turkali-3, and Turkali-4, were drilled using TPAO’s drillships Fatih and Kanuni. These wells helped in optimizing the field development.

Contractors and Partners

• A consortium of Schlumberger and Subsea 7 was awarded the integrated engineering, procurement, construction, and installation (EPCI) contract for Phase 1. Schlumberger is responsible for well completions and the early production facility, while Subsea 7 handles the subsea production systems, infield flowlines, and other associated subsea equipment.

Strategic and Political Significance

Energy Security

• The Sakarya Phase 1 project marks a significant shift in Turkey’s energy security, reducing the country's reliance on gas imports. It is expected to increase Turkey’s national gas output nearly tenfold by the end of 2023.
• The project enhances Turkey’s negotiating power with its gas import suppliers, including Russia and Iran, especially with contracts up for renewal in the late 2020s.

Future Phases

• Phase 2 of the project is planned to increase production to 14 billion cubic meters (bcm) per year, which could cover almost 30% of Turkey’s gas consumption by 2030. This phase will involve up to 30 additional wells, bringing the total to up to 40 wells.

Challenges and Risks

• The Black Sea presents unique logistical and environmental challenges, including ultra-deep waters, harsh conditions, and the need for specialist experience. The project’s success is also subject to geopolitical risks following Russia’s invasion of Ukraine in 2022.

In summary, the Sakarya Phase 1 gas field project is a critical development for Turkey, marking its entry into deepwater gas production and significantly enhancing its energy self-sufficiency.