S&P Global affirms Turkey at BB-. -Bloomberg

S&P Global affirms Turkey at BB-. -Bloomberg

Title: Turkey's Energy Ambitions and S&P Global Rating Affirmation

Turkey is making significant strides in its energy sector, with a focus on boosting domestic production and positioning itself as a regional energy hub. The Turkish Energy Minister, Alparslan Bayraktar, has revealed that the country is in talks to explore for oil and gas in Bulgaria, Iraq, and Libya. State-owned energy company Turkiye Petrolleri AO (TPAO) is set to sign an agreement with a foreign partner within the next month to conduct exploration in Bulgaria’s section of the Black Sea [1].

Turkey's strategic geographical position and infrastructure provide it with an advantage in becoming a regional energy hub. The country has signed a deal with Bulgaria to permit Bulgargaz to import 1.85 billion cubic meters of gas per year through the Strandzha-Malkoclar interconnection border point with Turkey [1]. However, the capacity to export via Bulgaria is currently around 3.5 billion cubic meters a year, and Bayraktar has expressed a need to increase this capacity [1].

Libya, despite its political instability, is also a key focus for Turkey's energy ambitions. Libya plans to increase oil output from 1.4 mb/d to 2 mb/d by 2028, but this will require significant capital outlays [1]. Turkey is also prepared to significantly increase natural gas exports to the European Union, aiming to re-export Azeri natural gas through Turkey [1]. This strategy aligns with Turkey's goal of reducing its reliance on Russian gas and positioning itself as a savior for the EU's energy needs.

In a recent development, S&P Global affirmed Turkey's credit rating at BB-, reflecting the country's economic and financial stability. The affirmation comes as Turkey continues to invest in its energy sector and seeks to diversify its energy sources [2].

References

[1] https://oilprice.com/Energy/Energy-General/Turkey-Eyes-Oil-Gas-Exploration-In-Bulgaria-Iraq-And-Libya.html
[2] https://www.bloomberg.com/news/articles/2025-04-26/sp-global-affirms-turkey-at-bb-