The exploring operations for natural gas and oil are regulated in Turkish Petroleum Law and exploration licence is given by the General Directorate of Petroleum Affairs. Exploration licence is issued in an aim to perform exploration activites within the land that the exploration licence covers, to undertake investgations around the land covered by the exploration licence, to develop the land where petroleum is found and to produce petroleum in these land and to make an application of exploration. Investigation permits, exploration licences and production leases may be granted to capital companies or legal entities established as capital companies in accordance with a foreign state's legislation provided.
In terms of exploration licence Turkey is divided into two districts as onshore and offshore. The coastline is the border for the onshore and offshore districts. Offshore is divided into to two parts; inner territorial waters and outer territorial waters. Grant of exploration licenses in outer territorial waters shall be subject to the approval of the Council of Ministers. These districts may partially or thoroughly be closed to exploration and production, modified or re-opened by the decision of the Council of Ministers. The exploration license shall be based on map sections of scale 1/50.000 for territorial borders and territorial waters. The largest land of license shall be a complete map section with scale 1/50.000. The smallest land of license shall be a complete map section with scale 1/25.000 provided that it is included in the same map section with scale 1/50.000. Land of license shall not exceed the map section with scale 1/50.000 and shall consist of map sections with scale 1/25.000. When the fields of licenses are contiguous, coastal line shall be taken as basis for the shores, in accordance with the specified limits determined with Coastal Waters Law No. 2674 dated 05.20.1982 and