The new law completely overhauled the country’s licensing block arrangement, changing it to a grid-based system across both the onshore and offshore sectors, Turkey’s Energy Minister Taner Yildiz said through an interpreter at the World Petroleum Congress in Moscow.

Under the terms, blocks onshore and in inshore waters can be as large as 56,000 square hectares, while offshore blocks can be up to 1 million square hectares.

Operators can apply for a license to explore any unclaimed blocks by proposing a work progamme and showing their experience of working in similar areas, Selami Incedalci, chairman of the general directorate of petroleum affairs explained through an interpreter.

After that, the government will advertise their interest for 90 days to allow for competing offers before awarding the block.

Initial exploration licenses will run for five years onshore with possible extensions for up to four years and eight years offshore with the possibility of extending the rights for up to six more years.

If operators make a commercial find, the area of the field can be converted into a production license that will be valid for up to 40 years.

Under the new law, the total government take is capped at 55%, including a 12.5% royalty on production.

In addition, Turkey implemented a series of tax breaks and incentives to coax operators into the sector such as tax waivers for equipment and partner contracts and six-month work visa waivers for oilfield workers.

Operators praised the working environment in Turkey, saying that the new law was well-supported by an efficient regulatory regime.

“As a private company in Turkey it’s a very favourable regime to work in,” Jim McFarland, chief executive of Valeura Energy, said, noting that his company is able to quickly get the approvals it needs to drill and complete wells and there is no restriction on hydraulic fracturing.

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Turkey looks to revamp oil laws