Chevron, signed a joint operation agreement with Turkey's state oil company for an exploration license in the Black Sea, as the US oil giant continues to push for deepwater assets outside of the Gulf of Mexico.
San Ramon, California-based Chevron will acquire a 50-per cent interest in a western portion of License 3921, an 8,700 square mile block located 220 miles northwest of the capital city of Ankara.
Türkiye Petrolleri Anonim Ortakligi (TPAO) will hold the remaining 50-per cent interest in the license and will be the operator of the initial exploratory well currently being drilled, but if significant oil is found, Chevron would take over and become operator.
''Chevron is pleased to have been selected as a partner for this exploration opportunity in Turkey,'' said Guy Hollingsworth, president of Chevron Europe, Eurasia, Middle East Exploration and Production. ''We're looking forward to expanding our partnership with TPAO and the Turkish government and helping to develop the country's offshore resources.''
Under the joint agreement, TPAO will drill three wells that will cost about $750 million, and is entitled to receive a $50 million bonus from Chevron if it strikes oil.
If the initial well is successful, 3D seismic will be acquired and an additional exploratory well will be drilled by TPAO during 2012.
Deepwater drilling is highly complex and requires immense experience as well as latest technology, which Chevron has, having drilled more than 300 deepwater wells around the globe.