Turkey’s government claims that it has discovered 75 billion cubic meters of natural gas in the Black Sea, a reserve that is estimated to be worth $30 billion.
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Turkish President Recep Tayyip Erdogan said over the weekend that, “With this discovery, we will meet the natural gas needs of homes in Turkey for 3.5 years.” The discovery was found in the Goktepe-3 well at a depth of 3,500 meters within the Black Sea.
Turkey’s daily natural gas production at its existing Sakarya field in the Black Sea has reached around 9.5 million cubic meters as the country ramps up its oil and natural gas sector and strives for greater energy independence.
Import Costs
Turkey currently imports more than 90% of its energy, something the government has pledged to change. President Erdogan has pledged to cut Turkey’s import bills and boost energy supplies by developing domestic resources and expanding international partnerships with oil and natural gas companies.
The new reserve discovered in Turkey could be a boon for oil and gas majors such as Chevron (CVX) and Shell (SHEL), as well as natural gas specialists such as Devon Energy (DVN) if they can get contracts to help the country develop the new deposit and extract the resources.
Is CVX Stock a Buy?
The stock of Chevron has a consensus Moderate Buy rating among 18 Wall Street analysts. That rating is based on 10 Buy, six Hold, and two Sell recommendations assigned in the past three months. The average CVX price target of $158.88 implies 15.04% upside from current levels.
