A Legal Guide to Cross-Border Petroleum and Natural Gas Transactions in the Turkish Energy Market

Turkey occupies a strategically significant position between major oil and natural gas producing regions in the Middle East, the Caspian Basin, Russia and Central Asia on the one hand, and major European energy-consuming markets on the other.

Its geographical position, extensive pipeline infrastructure, LNG terminals, refining capacity and growing natural gas trading framework make Turkey an important jurisdiction for international energy transactions.

However, importing crude oil or natural gas into Turkey is not merely an ordinary international sale of goods transaction.

An international oil or gas project may simultaneously involve:

• energy-market licensing;
• import authorisations;
• transmission and pipeline capacity rights;
• LNG terminal access;
• storage arrangements;
• customs procedures;
• technical standards;
• petroleum-stock obligations;
• environmental permits;
• foreign-exchange and payment arrangements;
• international sanctions and compliance;
• long-term supply agreements;
• transportation contracts;
• price-adjustment mechanisms; and
• international arbitration.

Accordingly, parties contemplating an oil or natural gas transaction involving Turkey should examine both the commercial contract and the public-law regulatory framework before committing to the transaction.

1. The Regulatory Structure of Turkey’s Oil and Gas Market

Turkey’s oil and gas sector is governed by several different statutes rather than a single energy code.

The principal legislation includes:

Petroleum Market Law No. 5015

Law No. 5015 primarily regulates the downstream petroleum market, including activities such as refining, processing, storage, transmission, transportation, distribution and other petroleum-market activities.

The Energy Market Regulatory Authority — Enerji Piyasası Düzenleme Kurumu (EPDK) — is the central regulatory authority responsible for licensing and supervising these activities.

EPDK currently maintains separate licensing procedures for refinery, processing, mineral-oil, storage, transmission, transportation, distribution, bunker-delivery and other petroleum-market activities. Applications for the relevant petroleum-market licences are principally conducted electronically.

Natural Gas Market Law No. 4646

The natural gas sector is principally governed by Law No. 4646 and the secondary regulations issued by EPDK.

The licensing system covers, among other activities:

• natural gas importation;
• exportation;
• transmission;
• storage;
• wholesale;
• distribution;
• compressed natural gas activities.

EPDK’s current licensing system specifically provides procedures for import, export, storage and transmission licences, among others. Natural gas licences are generally granted for periods of at least ten and up to thirty years, subject to the particular regulatory framework.

Turkish Petroleum Law No. 6491

Upstream petroleum exploration and production should be distinguished from downstream petroleum-market activities.

Exploration and production of petroleum resources in Turkey are principally governed by Turkish Petroleum Law No. 6491 and administered through the Ministry of Energy and Natural Resources and the General Directorate of Mining and Petroleum Affairs — MAPEG.

The legislation regulates petroleum research, exploration and production and requires the relevant exploration or production rights before upstream petroleum operations may be conducted.

This distinction is important for international investors.

Acquiring an interest in an oil field in Turkey and importing crude oil into Turkey are legally separate activities requiring different regulatory analyses.

2. Importation of Crude Oil and Petroleum Products into Turkey

The importation of crude oil and petroleum products is closely connected with the licensing regime established under Petroleum Market Law No. 5015.

A foreign seller cannot safely assume that delivering petroleum to a Turkish port is sufficient to establish lawful access to the Turkish petroleum market.

The Turkish purchaser must have the appropriate regulatory status to receive, import, process, distribute or otherwise deal with the relevant petroleum product.

The nature of the required authorisation depends on several factors, including:

• whether the product is crude oil or a refined petroleum product;
• the identity and licence of the purchaser;
• whether the petroleum will be processed in Turkey;
• whether the product will be distributed domestically;
• the proposed storage arrangement;
• the transportation method;
• the customs classification of the product; and
• the final use of the petroleum.

EPDK also regulates the official classification of crude oil, fuels, bunker products, base oils and petroleum-related substances. The applicable technical classification and customs tariff position should therefore be confirmed before importation.

In practice, a properly structured international petroleum transaction should therefore begin with a licence and product-classification review, not merely with negotiation of the purchase price.

3. Customs and Import-Regime Requirements

Energy-market licensing and customs law must be analysed separately.

A company may have the appropriate EPDK licence but still be required to comply with Turkey’s general import and customs legislation.

Turkey’s current Import Regime Decision regulates the general principles of importation, customs duties, additional financial obligations, import policies and relevant permissions.

The Ministry of Trade has authority to regulate import procedures and impose or administer permits, restrictions and other import measures.

Accordingly, parties should examine the applicable GTİP — Turkish customs tariff classification — for the relevant petroleum product.

A transaction may require analysis of:

• customs declarations;
• product origin;
• applicable customs duties;
• VAT and special consumption tax implications;
• additional financial obligations;
• technical import controls;
• documentary requirements; and
• country-of-origin restrictions.

The relevant customs position should be determined separately for crude oil, gasoline, diesel, fuel oil, LPG, base oils and other petroleum products.

International parties should therefore avoid treating the commercial description contained in a sale contract as determinative for Turkish customs purposes.

4. Natural Gas Importation into Turkey

Natural gas importation is subject to a more specific licensing structure.

Under the Turkish natural gas regime, a company intending to import natural gas generally requires an appropriate natural gas import licence from EPDK.

The regulatory analysis differs depending on whether the transaction involves:

• long-term pipeline gas;
• spot pipeline gas;
• liquefied natural gas — LNG;
• importation from an existing supply source; or
• a new supply source.

EPDK’s licensing documentation illustrates the level of regulatory scrutiny involved.

For certain import-licence applications, applicants may be required to provide information concerning:

• the source of the natural gas;
• reserves and production facilities;
• the relevant transmission system;
• the identity of the foreign seller;
• expected annual import volumes; and
• contractual documentation or preliminary agreements with the supplier.

These requirements reflect the importance placed on security of supply in Turkish natural gas regulation.

Therefore, a foreign gas supplier negotiating a Turkish Gas Sale Agreement should establish from the outset whether its Turkish buyer has — or can obtain — the regulatory authorisation necessary to perform the proposed transaction.

5. Spot Pipeline Gas Imports

Turkey has also developed a specific regulatory mechanism for spot pipeline gas imports.

Spot pipeline gas should not be approached simply as an over-the-counter commodity transaction between a foreign producer and Turkish buyer.

Available cross-border transmission capacity is a crucial regulatory and commercial component.

EPDK operates procedures concerning spot pipeline import capacity through electronic demand-collection and, where applicable, competition mechanisms.

This regime remains active in 2026.

For example, EPDK conducted capacity-allocation procedures for August 2026 spot pipeline imports, including capacity at the Kıyıköy and Gürbulak entry points.

This demonstrates an essential feature of international gas transactions:

having a gas supply contract does not necessarily mean that the buyer has the physical or regulatory capacity to deliver that gas into Turkey.

Before executing a spot gas purchase, parties should therefore verify:

1. import-licence eligibility;
2. available entry-point capacity;
3. capacity-allocation rules;
4. transmission rights;
5. nomination procedures;
6. balancing obligations; and
7. delivery specifications.

A supply contract that ignores transmission capacity can become commercially ineffective even where the seller has sufficient gas available.

6. LNG Importation and Terminal Access

LNG provides an alternative to pipeline-based imports and has become increasingly important for energy diversification and supply security.

An LNG transaction may involve several separate contractual relationships:

• LNG Sale and Purchase Agreement;
• shipping or charterparty agreement;
• LNG terminal-use agreement;
• storage agreement;
• regasification arrangement;
• transmission agreement; and
• downstream gas-sale agreement.

Turkish law separately regulates LNG storage facilities and their basic usage arrangements. EPDK’s natural gas regulatory framework includes specific rules concerning LNG storage facilities as well as underground natural gas storage facilities.

Therefore, an LNG seller or purchaser must examine not only the commodity contract but also whether terminal capacity has been secured.

Key contractual issues include:

• terminal slot availability;
• vessel compatibility;
• nomination procedures;
• berthing rights;
• unloading windows;
• LNG quality specifications;
• boil-off gas allocation;
• measurement;
• regasification capacity;
• send-out obligations;
• terminal losses;
• demurrage; and
• liability for delayed arrival.

A seller may have complied with an LNG SPA but still face substantial exposure if the vessel misses its terminal slot or is technically incompatible with the receiving facility.

7. Pipeline Transportation and Network Access

Transportation is one of the most important components of both crude-oil and natural gas transactions.

In the petroleum market, pipeline transmission constitutes a separately regulated activity.

For example, BOTAŞ operates the Ceyhan–Kırıkkale crude-oil pipeline under a petroleum transmission licence, and the transmission tariff applicable to that infrastructure has been subject to EPDK regulation.

Natural gas transmission involves an even more detailed network-access framework.

Commercial parties must consider:

• entry capacity;
• exit capacity;
• capacity reservation;
• daily nominations;
• renominations;
• imbalance charges;
• gas quality;
• pressure;
• metering;
• maintenance periods;
• interruption rights; and
• network tariffs.

Consequently, the physical route of the gas should be determined before the underlying commercial contract becomes unconditional.

A particularly important contractual issue is therefore the distinction between:

commodity risk and transportation risk.

If the seller’s obligation ends at a foreign border point while the buyer is responsible for securing Turkish transmission capacity, the risk allocation differs significantly from a contract under which the seller must deliver gas directly into the Turkish transmission system.

8. International Transit Pipelines

Turkey’s position as an energy corridor also creates a separate legal category: transit pipelines.

Law No. 4586 on the Transit Passage of Petroleum through Pipelines regulates the transit transportation of petroleum through Turkish territory and operates alongside relevant international agreements and project-specific arrangements.

Its scope covers a broad range of activities associated with transit pipelines, including:

• route determination;
• engineering;
• financing;
• expropriation;
• construction;
• commissioning;
• operation;
• maintenance;
• expansion;
• terminal loading;
• storage;
• shipment; and
• environmental rehabilitation.

Large-scale cross-border pipeline projects should therefore not be analysed solely through ordinary Turkish petroleum-market licensing.

Intergovernmental agreements, host-government agreements, transit agreements and project-specific legislation may substantially affect the regulatory structure.

9. Storage of Oil and Natural Gas

Storage has increasingly become a strategic element of international energy transactions.

A storage arrangement can serve several purposes:

• operational balancing;
• emergency reserves;
• seasonal natural gas management;
• commodity trading;
• security of supply;
• inventory optimisation; and
• price arbitrage.

Both petroleum and natural gas storage activities are regulated under Turkish energy legislation.

In the natural gas market, storage facilities may include both underground natural gas storage facilities and LNG terminals, and the applicable EPDK framework includes specific facility-use regulations.

Storage agreements should therefore address issues such as:

• injection and withdrawal capacity;
• minimum inventory;
• working gas;
• cushion gas;
• storage losses;
• quality deterioration;
• operating pressure;
• nomination procedures;
• withdrawal priority;
• maintenance;
• force majeure; and
• liability for contamination.

The legal character of title to the stored commodity should also be expressly addressed.

It should be clear whether the storage operator takes title to the product or merely holds the commodity on behalf of the customer.

10. Mandatory Petroleum Stocks

Another major regulatory consideration is Turkey’s mandatory petroleum-stock regime.

Petroleum Market Law No. 5015 establishes national petroleum-stock obligations as part of the country’s energy-security framework.

This is not merely a theoretical compliance issue.

In 2026, EPDK issued specific decisions relating to the release and subsequent replacement of mandatory petroleum stocks in response to international supply-security developments.

In June 2026, the replacement deadline for petroleum stocks released under emergency arrangements was extended through 31 December 2026, with the relevant stock-restoration obligation taking effect from 1 January 2027.

This illustrates how geopolitical developments can have immediate regulatory consequences for companies operating in the Turkish oil market.

Petroleum-sector investors should therefore incorporate stock-maintenance costs and emergency-regulation risks into both their commercial and compliance planning.

11. Structure of International Oil Sale Contracts

The international purchase of crude oil or petroleum products should be documented through a carefully drafted Sale and Purchase Agreement.

Important provisions normally include:

Product Specification

The contract should precisely define the commodity.

For crude oil, specifications may include:

• API gravity;
• sulphur content;
• density;
• water and sediment;
• viscosity; and
• other quality parameters.

For refined products, the agreement should refer to the applicable technical standards and testing methodology.

Quantity

The agreement should define:

• contractual quantity;
• permitted operational tolerance;
• measurement point;
• calculation methodology; and
• binding measurement certificate.

Price

Oil prices are frequently tied to international benchmarks.

A formula may refer to:

• Brent;
• Platts assessments;
• Argus assessments;
• differentials;
• freight adjustments; or
• agreed premiums and discounts.

The contract must specify what happens if the relevant benchmark is discontinued, materially altered or becomes unavailable.

Delivery Terms

Incoterms such as FOB, CIF or DAP may be incorporated where appropriate.

However, parties should remember that Incoterms primarily allocate delivery obligations, costs and risk.

They should not assume that an Incoterm automatically determines every issue concerning transfer of title.

The contract should therefore separately specify exactly when ownership of the petroleum passes.

Inspection and Measurement

Independent inspection organisations are frequently used.

The agreement should state whether certificates concerning quantity and quality are:

• final and binding;
• prima facie evidence; or
• subject to contractual challenge.

12. Long-Term Natural Gas Sale Agreements

Long-term Gas Sale Agreements are structurally different from ordinary commodity-sale contracts.

The economics of natural gas are closely connected with pipeline infrastructure and reserved capacity.

Accordingly, agreements frequently contain provisions relating to:

Annual Contract Quantity

The parties determine the total quantity expected to be supplied during the contractual year.

Daily Contract Quantity

Daily supply rights and obligations may also be established.

Take-or-Pay

A take-or-pay provision may require the buyer to pay for a minimum quantity even if the buyer does not physically take all of the contracted gas, subject to contractual exceptions.

Such provisions are commonly used to allocate the financing and demand risks associated with long-term gas supply.

Make-Up Gas

Where the buyer has paid for gas not taken, the contract may permit the buyer to recover corresponding volumes during future periods.

Delivery Point

The delivery point can have major legal consequences because it may determine:

• transfer of risk;
• transportation responsibility;
• customs responsibility;
• regulatory responsibility; and
• measurement obligations.

Gas Quality

The agreement should define:

• calorific value;
• composition;
• pressure;
• temperature;
• contaminants; and
• treatment of off-specification gas.

Nomination Procedures

The commercial agreement should be coordinated with transmission-system nomination deadlines.

A contractually valid nomination delivered too late for the transmission system may have limited practical value.

13. Price Review and Hardship Clauses

Long-term energy contracts may operate for ten, fifteen or twenty years.

During that period, energy markets can change dramatically.

Accordingly, a well-drafted long-term gas agreement should consider a price-review mechanism.

A price-review clause may be triggered by substantial changes in:

• market prices;
• competing energy sources;
• destination-market conditions;
• regulatory costs;
• taxes;
• transportation costs; or
• the economic basis of the contract.

The clause should determine:

1. when a review may be requested;
2. what constitutes a qualifying change;
3. the relevant reference market;
4. the date from which a new price applies;
5. whether retroactive adjustment is permitted; and
6. what happens if the parties cannot agree.

Because price-review disputes can involve extremely large amounts, the dispute-resolution provision should be drafted at the same time as the price-review clause.

14. Force Majeure in Oil and Gas Contracts

Force majeure is especially significant in cross-border energy transactions.

Potential events may include:

• war;
• armed conflict;
• closure of maritime routes;
• pipeline explosions;
• terminal shutdowns;
• government restrictions;
• earthquakes;
• embargoes;
• exceptional natural disasters; and
• physical interruption of upstream supply.

However, a commercial price increase alone does not automatically constitute force majeure.

Similarly, the fact that performance has become less profitable does not necessarily excuse performance.

The contract should therefore expressly define:

• qualifying force majeure events;
• notification requirements;
• mitigation duties;
• consequences for take-or-pay;
• suspension rights;
• maximum force majeure period; and
• long-stop termination rights.

Parties should also distinguish force majeure from hardship.

Force majeure normally concerns inability to perform, while hardship clauses generally address a fundamental alteration of the economic balance of the agreement.

15. Sanctions and Trade Compliance

International oil and gas transactions require particularly careful sanctions compliance.

Energy cargoes may pass through several jurisdictions and may involve:

• foreign sellers;
• shipowners;
• charterers;
• banks;
• insurers;
• payment intermediaries;
• terminal operators; and
• beneficial owners.

The parties should therefore conduct due diligence concerning:

• ultimate beneficial ownership;
• vessel identity and history;
• cargo origin;
• loading port;
• payment banks;
• insurers;
• sanctions lists; and
• applicable trade restrictions.

A critical distinction should nevertheless be maintained.

Sanctions imposed by the United States, European Union or United Kingdom do not automatically become Turkish domestic law merely because a Turkish company is involved.

However, they may still become commercially decisive where:

• a financing bank is subject to those sanctions;
• payments are made in the relevant currency;
• an insurer is subject to the sanctions regime;
• a contractual sanctions clause incorporates the relevant restrictions; or
• another jurisdiction with a sufficient connection to the transaction imposes mandatory rules.

The sanctions clause should therefore be drafted specifically for the transaction rather than merely copied from a standard template.

16. Governing Law in International Energy Contracts

The parties to an international oil or gas transaction should expressly select the law governing their contract.

Depending on the transaction, the parties may select:

• Turkish law;
• English law;
• Swiss law; or
• another commercially appropriate legal system.

However, choosing foreign law does not eliminate mandatory Turkish regulatory requirements.

For example, a gas supply agreement may be governed by English law while:

• import licensing;
• Turkish network access;
• customs procedures;
• storage regulation; and
• EPDK compliance

remain governed by mandatory Turkish public law.

This distinction between contract law and regulatory law is fundamental.

17. The CISG and International Energy Sales

Turkey is a Contracting State to the United Nations Convention on Contracts for the International Sale of Goods — CISG, which entered into force for Turkey on 1 August 2011.

The CISG establishes a uniform legal regime for qualifying international sales of goods, covering matters including contract formation, seller and buyer obligations and remedies for breach.

Accordingly, the CISG may potentially apply to qualifying international sales of petroleum products, crude oil or gas unless:

• the requirements for its application are not satisfied;
• the transaction falls outside its substantive scope; or
• the parties validly exclude its application.

International parties should therefore avoid simply writing:

“This Agreement shall be governed by Turkish law.”

without considering whether that choice may also result in application of the CISG.

If the parties do not wish the CISG to apply, the contract should address the issue expressly.

18. International Arbitration in Oil and Gas Contracts

Energy contracts frequently contain arbitration clauses because disputes may involve:

• large financial amounts;
• technically complex evidence;
• confidential commercial information;
• multinational parties; and
• assets in several jurisdictions.

International contracts involving Turkey may provide for arbitration under institutions such as:

• ICC;
• ISTAC;
• LCIA; or
• other agreed arbitration rules.

The Istanbul Arbitration Centre — ISTAC — provides international and domestic arbitration services and offers procedures including emergency arbitration and fast-track arbitration.

Turkey is also a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which is central to the international enforceability of arbitral awards.

A properly drafted arbitration clause should specify at least:

• arbitration institution;
• arbitration rules;
• seat of arbitration;
• number of arbitrators;
• language;
• governing law; and
• scope of disputes submitted to arbitration.

For technically complex oil and gas disputes, the parties should also consider whether arbitrators should possess experience in energy markets, engineering, pricing or international commodity trading.

19. Foreign Investors Entering the Turkish Oil and Gas Market

Foreign investors considering an energy transaction in Turkey should begin with regulatory due diligence.

The analysis should normally determine:

What activity will be performed?

Importation, storage, wholesale, transportation, transmission, refining and exploration are legally distinct activities.

What licence is required?

The required licence should be identified before capital is committed.

Who will hold the licence?

The corporate structure should be designed consistently with the applicable energy-market legislation.

Is physical infrastructure available?

Commercial supply obligations should correspond with real pipeline, terminal and storage capacity.

Are additional permits required?

Depending on the project, environmental, zoning, construction, customs, port, maritime and technical permissions may be necessary.

Are there existing infrastructure agreements?

Pipeline and terminal rights can materially affect transaction economics.

Is the proposed contract consistent with Turkish mandatory law?

A carefully negotiated foreign-law agreement cannot override Turkish public-law licensing requirements.

20. Due Diligence Checklist for an International Oil or Gas Transaction in Turkey

Before signing a major cross-border energy agreement, the parties should investigate at least the following matters:

Regulatory status:
Does the Turkish counterparty hold the required EPDK licence?

Product classification:
How is the petroleum product classified under Turkish energy and customs regulations?

Import rights:
Is the proposed importer legally entitled to import the commodity?

Transmission capacity:
Has sufficient pipeline entry and exit capacity been secured?

Terminal capacity:
For LNG or seaborne petroleum, are terminal and unloading rights available?

Storage:
Is storage capacity secured and appropriately licensed?

Customs:
What GTİP classification, tax and import documentation applies?

Security of supply:
Are mandatory storage or petroleum-stock obligations applicable?

Sanctions:
Are the supplier, vessel, banks and beneficial owners compliant with applicable sanctions regimes?

Payment:
Is the agreed payment mechanism practically available through the banking system?

Governing law:
Does the contract expressly determine the governing law and CISG position?

Dispute resolution:
Is the arbitration provision enforceable and commercially appropriate?

Conclusion

International oil and gas transactions involving Turkey require the integration of energy regulation, international trade law and sophisticated commercial contracting.

For petroleum transactions, Petroleum Market Law No. 5015 and EPDK regulations form the central downstream regulatory framework, while upstream petroleum exploration and production remain principally governed by Turkish Petroleum Law No. 6491.

Natural gas transactions are primarily regulated under Natural Gas Market Law No. 4646 and its extensive secondary legislation.

The legal analysis becomes more complex where the transaction involves pipeline capacity, LNG terminals, storage facilities or international transit infrastructure.

An international supply agreement should therefore not be negotiated in isolation from regulatory requirements.

Before executing a crude-oil SPA, LNG SPA or long-term Gas Sale Agreement, parties should determine:

1. who is legally entitled to import the commodity;
2. which licences are required;
3. how the commodity will physically enter Turkey;
4. whether transmission, terminal and storage capacity is secured;
5. which customs and tax rules apply;
6. how title and risk will pass;
7. how quantity and quality will be measured;
8. how price adjustments and market disruptions will be addressed;
9. which sanctions and compliance regimes affect the transaction; and
10. how disputes will ultimately be resolved.

The most significant risk in an international oil and gas transaction is therefore not always the commodity price itself.

A commercially attractive transaction may become impossible to perform where licensing, pipeline capacity, terminal access, regulatory approvals and contractual risk allocation have not been coordinated from the outset.

For foreign investors, producers, commodity traders, LNG suppliers and international energy companies entering the Turkish market, regulatory due diligence and carefully drafted commercial agreements should therefore form an integral part of the transaction before the first cargo is loaded or the first quantity of gas is nominated.

This article is intended for general informational purposes regarding Turkish energy and commercial law and does not constitute legal advice for any particular transaction.