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Petoil was established in 1990 as a member company of Pet Holding.



Petoil initiated its petroleum operations in 1990, with two exploration licenses in South East Turkey. Re-entry to an existing well proved the licenses to be uncommercial and they were then relinquished. Between 2004 and 2009, nine exploration licenses; two in South East Turkey and 7 in Black Sea offshore, were again granted to Petoil. These licenses were relinquished following geological studies that proved the licenses to be uncommercial.



The Turkic republics that appeared after the dissolution of the USSR became a very attractive area of interest for petroleum companies. In this respect, Petoil studied several exploration blocks in the North Caspian Basin in 1992. Considering the size of the projects, Petoil seeked joint venture possibilities with TPAO. In conclusion, 7 exploration blocks were granted to Kazakhturkmunay Joint Company, established with the participation of the Ministry of Geology of the Kazakhstan Republic. However, the aggressive exploration program imposed by the majority shareholder TPAO caused Petoil to assign its interest in the project to TPAO and withdraw from the joint venture. Petoil further acquired the development rights of Karakuduk field in 1993 and formed a joint venture named Karakudukmunay JV with its Kazakh counterpart. Later, Petoil sold its interest in the JV to Chaparral Resources and in return, acquired a certain number of shares in the said company. During this period, Petoil provided workover services to oil companies in Kazakhstan.



Petoil is the first western oil company to enter Azerbaijan. With more than 900 employees, Petoil rehabilitated and operated Mishovdag and Kelameddin oil fields comprising a total of 400 wells, through the AzerPetoil Joint Venture established in 1992 with the State Oil Company of the Azerbaijan Republic (SOCAR). This Joint Venture was restructured in 2000 into a Production Sharing Agreement (PSA) regime with the participation of Moncrief Oil International, a US company. Later, in early 2003, Petoil assigned its participating interest in the PSA to Nations Energy, a Canadian company, and withdrew from the project.



Petoil is the first oil company to enter Kurdistan Region of Iraq. Petoil negotiated and, in January 2003, signed a PSA with the regional authorities of Kurdistan Region of Iraq, covering a large area, which was subsequently reduced to the current Shakal Block (9%). In March 2006, Petoil's wholly owned subsidiary A&T Petroleum Co. Ltd. was granted another PSA covering Bina Bawi (23%) surface anticline in the same region and was appointed the operator of the project. Later, in 2011, operatorship of Bina Bawi was transferred to another partner in the project. Petoil signed Production Sharing Contracts for Chia Surkh field in June 2009 (20%) and Pulkhana field in August 2009 (20%).



In 2004, Petoil acquired exclusive negotiation rights for two exploration blocks, Block 39 and Block 3, in the Republic of Yemen. Following the technical studies, Block 39 was relinquished, mainly due to the lack of infrastructure in the area and the high exploration risk involved. Petoil currently holds an interest of 34% in Jardan Block 3. The PSA covering an area of 2950 km2 was signed in 2005. Following the completion of seismic studies, Tubb'a-1 well drilled in 2009 discovered gas and condensate in the primary target, the fractured basement. Petoil is farming out its interest in Yemen and the procedures are completed, with the exception of a final approval from the Yemen Government.