Turkey Doubles Down on Upstream Development with TRY332 Billion Allocation

Turkey's energy sector has seen significant investments in upstream development, particularly in oil and gas exploration. In 2026, approximately 67% of Turkey's combined public energy and mining allocation went towards upstream activities, up from 54% in 2025. This investment totals TRY332.6 billion, with a substantial portion allocated to the Sakarya gas field.

The country remains heavily reliant on crude imports, with Russia and Iraq supplying over 72% of its needs in 2024. However, domestic production is growing, with oil output increasing by 26% from 38 million barrels in 2024 to 47.9 million barrels in 2025.

To meet the country's ambitious target of producing 210,000 barrels per day by 2028, continued exploration and discovery are crucial. New discoveries will be essential for sustaining growth beyond existing fields, which provide infrastructure and operating capabilities but are subject to natural well declines.

The Gabar region is a focus area for national oil expansion, with existing operations providing geological analogues and routes to domestic buyers. Dune Oil's project in the North Field of Block M47 aims to advance toward production, leveraging nearby refining capacity and reducing reliance on imports.