The 7th International Istanbul Bunker ConferenceIstanbul

REGULATIONS REGARDING MARINE FUELSIN

TURKEY

Mehmet KÜRKÇÜEnergy Expert

May, 2015

REGULATORY FRAMEWORKLEGISLATIVE STRUCTURE

Implementing Regulations- Licensing- Technical Criteria- Monitoring- National marker- Inspections- Pricing

Communiqué- Administrative Fines- Insurance Liabilities- Mineral Oils- Biofuel Blending

Board Decisions- Regulatory- Executive

PETROLEUM MARKET LAW

REGULATORY FRAMEWORKLEGISLATIVE UPDATES

• Implementing Regulation on Technical Criteria to beImplemented in Petroleum Market

New Methodology for Technical Regulations

• Board Decision on Crude Oil, Liquid Fuels, Lubricants, BaseOils and Oil-based Products

New Nomenclature for Bunker Fuels

• TS ISO 8217

New Bunker Fuel Specifications

REGULATORY FRAMEWORKLEGISLATIVE UPDATES

Implementing Regulation on Technical Criteria Applied in

Petroleum Market (Article 5/2)

• Turkish standards on liquid fuels become mandatory

technical regulations, six months after their enactment.

• No technical communiqué, watch for standard updates!

• Exceptions to technical regulations can be introduced by the

Board, by taking into account market needs.

• TS ISO 8217 (2014) is mandatory by December 31,2014.

REGULATORY FRAMEWORKLEGISLATIVE UPDATES

Board Decision on Crude Oil, Liquid Fuels, Lubricants, Base Oils

and Oil-Based Products (Article 6/2)

REGULATORY FRAMEWORKLEGISLATIVE UPDATES

Board Decision on Crude Oil, Liquid Fuels, Lubricants, Base Oils

and Oil-Based Products (Article 6/2)

REGULATORY FRAMEWORKFINAL REMARKS

Other Relevant Legislation

• For further technical requirements, please consult

«Implementing Regulation on Reduction of Sulphur

Content in Certain Liquid Fuels» published by the

Ministry of Environment and Urbanization.

The 7th International Istanbul Bunker ConferenceIstanbul

MARINE FUELS MARKET IN

TURKEY

Mehmet ÖZCANEnergy Expert

May, 2015

WHAT IS?

• THE AMOUNT OF BUNKER DELIVERIES FROM TURKEY• THE SHARE OF EACH FUEL TYPE IN DOMESTIC &

NON-DOMESTIC SALES• MARKET CONCENTRATION

WHERE IS?

• THE POINTS OF DELIVERIES WITH HIGHEST SALESVOLUMES

SCOPE

TYPES OF DELIVERIES

BUNKER DELIVERIES

DOMESTIC CONSUMPTION

NON DOMESTIC CONSUMPTION

EXPORT

TRANSIT SALES

BUNKER FUELSTOTAL DELIVERY

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

2013 2014 2015

ton

ne

s

Marine Gasoil Gasoil Fuel Oil

BUNKER FUELSTOTAL DELIVERY

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

Mar

ch

Ap

ril

May

Jun

e

July

Au

gust

Sep

tem

be

r

Oct

ob

er

No

vem

be

r

De

cem

ber

Jan

uar

y

Feb

ruar

y

2013 2014 2015

ton

ne

s

Marine Gasoil Gasoil Fuel Oil

BUNKER FUELSDOMESTIC CONSUMPTION

January February March April May June July August September October November December

2013 32.545 25.473 25.585 24.222 25.794 28.090 30.673 34.644 33.517 32.924 31.548 32.612

2014 26.829 24.410 24.986 22.706 24.286 26.323 27.128 32.798 35.680 33.345 30.288 35.214

2015 27.283 27.836

0

5.000

10.000

15.000

20.000

25.000

30.000

35.000

40.000

45.000

50.000

ton

ne

s

BUNKER FUELSNON-DOMESTIC CONSUMPTION

January February March April May June July August September October November December

2013 143.646 128.259 152.340 171.721 168.534 132.296 160.719 147.788 149.884 148.371 146.355 154.041

2014 143.107 127.664 138.849 136.118 142.436 130.940 143.751 158.145 160.692 170.729 155.772 164.442

2015 156.078 149.133

120.000

130.000

140.000

150.000

160.000

170.000

180.000

ton

ne

s

SHARE OF FUEL TYPES DOMESTIC SALES

0

10

20

30

40

50

60

70

80

90

100

Fuel Oil (Sulphur content exceeding 1%) Gasoil Marine Gasoil (Sulphur content 0,002% and0,1%)

%

2013 2014 2015

SHARE OF FUEL TYPES NON-DOMESTIC SALES

0

10

20

30

40

50

60

70

80

90

Fuel Oil (Sulphur content exceeding1%)

Gasoil Marine Gasoil (Sulphur content0,002% and 0,1%)

Marine Gasoil (Sulphur contentbetween 0,001% and 0,002%)

%

2013 2014 2015

SHARE OF FUEL TYPESTOTAL SALES

2013 2014

domestic non-domestic domestic non-domestic

Fuel Oil (Sulphur content exceeding 1%) 2,29 97,71 3,84 96,16

Gasoil 92,63 7,37 92,75 7,25

Marine Gasoil (Sulphur content 0,002% and 0,1%)

0,87 99,13 5,78 94,22

SALES IN TURKEY BY POINT OF DELIVERYFIRST 5

Total Sales2013 2014

Amount (tonnes) % Amount (tonnes) %

İSTANBUL 1.624.667 75,22 1.649.025 75,36

KOCAELİ 219.968 10,18 190.428 8,70

İZMİR 145.485 6,74 131.943 6,03

HATAY 10.234 0,47 55.710 2,55

MERSİN 32.610 1,51 46.534 2,13

Kocaeli

Hatay

x 5x 1,5

MARKET CONCENTRATION

2013 2014

First 5 76,10 77,22

First 10 93,74 97,15