Türkiye's legislation on oil security
Part of Oil Security Toolkit
Introduction
The Turkish oil supply emergency regime is governed by the 2003 Petroleum Market Law (5015/2003) (PML).
Relevant domestic legislation
Related domestic legislation
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Circumstances triggering operation of the emergency response system
The Turkish PML does not specify the circumstances that would trigger the provisions of the PML. Article 16 PML merely states that it aims to protect Turkey against crises and extraordinary circumstances. National Oil Stock Commission which has been established in accordance with the law (PML) has been authorized to take decision concerning emergency response system. Commission’s responsibility and working procedures have been specified in the Decree of Council of Ministers issued on 28 January 2005 dated Official Gazette.
Authority determining whether emergency exists
Turkey has adopted a presidential system of governance after a referendum that took place on April 16, 2017. With Article 147 of Decree Law No. 700 dated 2/7/2018, the phrase “Council of Ministers” has been changed as “President” in the PML. Therefore according to article 16 PML, it is the President of Turkey that determines whether or not the provisions of the PML shall be utilized to address an oil supply emergency.
Legal stockholding obligations
General
The Turkish PML provides that part of the national emergency stocks shall be held by oil refineries and oil distributers (article 16 PML).
Storage Agency
There is no Storage Agency.
Storage Quantity
According to article 16 PML, Turkey aims to maintain emergency stocks corresponding at least to 90 days of average net imports of the previous year. Oil refineries and distributers must stock emergency stocks corresponding to at least 20 days of supplied product in the previous year (article 16 PML).
Availability of stocks
In order to provide availability of oil stocks, administrative fine has been introduced in the Turkish PML (article 19). According to article, 250 Turkish Lira fine is applied for each missing tons of oil stock in case of detection.
Storage Locations
The location of Turkish emergency stocks is determined by the National Oil Stock Commission (Decree of Council of Ministers issued on 28 January 2005)
Sale of excess stocks
There are no legal regulations on this subject.
Mechanisms to address emergency
General
Whether or not and which kind of emergency measures should be taken is determined by the President of Turkey (article 16 PML).
Stockdraw
Sale/Tender
The release of emergency stocks is subject to a decision of the National Oil Stock Commission (Decree of Council of Ministers issued on 28 January 2005)
Production Surge
There is not a legal regulation regarding production surge.
Demand restraint
The Turkish PML makes no reference to demand restrain measures.
Fuel Switching
N/A
Relaxations of Road Traffic and Transport Laws
N/A
Monitoring and enforcement of emergency regime
Turkey’s emergency regime is monitored and enforced on the domestic and international level. Each will be considered in turn. Following the sub regulations to implement the PML which was adopted in 2017, monitoring system of emergency oil stocks was built by the Energy Market Regulatory Authority (EMRA) who is responsible for auditing of the Turkish stockholders. Regarding to this system, emergency stocks are monitored electronically in an hourly and daily basis.
Domestic
Reporting duties
The energy market data are collected by the Energy Market Regulatory Authority. The relevant international submissions are carried out by the General Directorate of Mining and Petroleum Affairs. The preparation of the national energy balance is under the responsibility of the Ministry of Energy and Natural Resources. All daily basis data related to the emergency stocks are gathered and reported electronically.
Enforcement
The provisions of the PML are enforced by the Energy Market Regulatory Authority. But provisions of Article 16 PML concerning oil stocks are in the responsibility of National Oil Stock Commission. Responsibilities of oil stocks’ holders are controlled / audited monthly. In case of detection of any violations, infringement is determined under the Articles 16 and 19 of the PML.
International
The IEA
As a member of the International Energy Agency (IEA), Turkey is obliged, pursuant to article 2 of the International Energy Programme (IEP), to maintain oil reserves equal to 90 days of net imports of the previous year. IEA Members are obliged to submit information concerning their emergency measures to the IEA secretariat (article 32 IEP) on a continuous basis and the IEA monitors Member countries’ compliance with the IEP.