Chevron and Turkey in Talks for Joint Oil & Gas Exploration

Per Bloomberg, Turkey’s state-owned energy company, Turkish Petroleum Corp. or TPAO, is in discussions with Chevron Corporation CVX to jointly explore oil and gas resources, marking another step in Turkey’s push to strengthen domestic energy production. The talks, which remain confidential, focus on potential collaboration in seismic studies and drilling operations across key offshore regions.

If finalized, the partnership would add Chevron to a growing list of major U.S. energy companies working with Turkey, following a January agreement between TPAO and Exxon Mobil Corporation XOM for joint exploration in the Black Sea and the Mediterranean. According to this agreement, XOM would identify oil and natural gas resources in the untapped areas of the Black Sea and Mediterranean.

Scope of the Potential Collaboration

According to officials familiar with the matter, TPAO and Chevron are evaluating joint work on seismic surveys and drilling, though the specific projects have not been disclosed. Chevron, currently carrying a Zacks Rank #3 (Hold), confirmed it continues to assess global exploration opportunities but declined to comment on commercial details.

TPAO already has a broad international footprint, with operations in the Black Sea, Iraq, Russia and Somalia. It has also previously conducted drilling activities in the eastern Mediterranean, an area where Chevron operates producing fields in Israeli and Cypriot waters.

Boosting Energy Independence

The talks with Chevron fit into Turkey’s broader strategy to reduce its near-total reliance on imported oil and gas. Turkey has been investing heavily in expanding domestic production while also strengthening TPAO’s role as an international exploration player.

In recent years, TPAO has expanded its fleet of specialized offshore exploration vessels, enhancing its ability to undertake complex deepwater projects. The company has also announced plans to raise up to $4 billion through its first Islamic bond sale, underlining its ambitions to finance large-scale energy developments.

Chevron’s Technical Edge in the Mediterranean

Chevron brings extensive experience in the Mediterranean basin, particularly in offshore fields in Israeli and Cypriot waters. This operational knowledge could prove valuable for projects in geologically complex areas such as the eastern Mediterranean and parts of the Black Sea.

Deepwater exploration in these regions requires advanced seismic interpretation and drilling technologies capable of handling challenging formation pressures and temperatures. Robust safety and risk management systems are also critical, especially as operations move farther offshore and into deeper waters.

Infrastructure and Connectivity Opportunities

One potential advantage of exploration success lies in the region’s existing energy infrastructure. Parts of the eastern Mediterranean are close to established pipeline networks, which could lower development costs and shorten timelines for bringing new production to market.

However, cross-border pipeline integration would require careful regulatory coordination among multiple countries. Turkey’s geographic position offers potential links to European gas markets, but such connections depend on diplomatic alignment as well as technical feasibility.

Assessing Resource Potential and Commercial Viability

Both the Black Sea and the eastern Mediterranean offer promising but distinct geological prospects. Each basin presents unique technical and economic challenges that will shape the commercial viability of any discoveries.

The eastern Mediterranean, in particular, already hosts proven hydrocarbon reserves across several national jurisdictions. Proximity to Chevron’s existing operations could create operational synergies, improving cost efficiency and execution if joint projects move forward.

The discussions come amid improving U.S.-Turkey relations, which have helped create a more favorable environment for American energy investments in Turkey. A Chevron-TPAO partnership would be part of a broader trend of deepening economic and strategic cooperation between the two countries.

What Comes Next

Any partnership between TPAO and Chevron would unfold in phases, from technical evaluations and regulatory approvals to drilling and potential development. Success will depend on effective coordination between corporate and government stakeholders, technical execution and supportive market conditions.

Beyond its commercial implications, the potential deal signals Turkey’s continued drive toward greater energy independence and a more prominent role in regional hydrocarbon development across the Mediterranean basin.

Key Picks

Investors interested in the energy sector may consider some top-ranked stocks like Cenovus Energy Inc. CVE and Oceaneering International, Inc. OII. Cenovus Energy and Oceaneering International currently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

Calgary, Canada-based Cenovus Energy is a leading integrated energy firm. The company’s operations comprise marketing the produced oil, natural gas and natural gas liquids. The Zacks Consensus Estimate for CVE’s 2025 earnings indicates 26.2% year-over-year growth.

Houston, TX-based Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. The Zacks Consensus Estimate for OII’s 2025 earnings indicates 76.3% year-over-year growth.

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