ADEM ORHUN The small unmanned air vehicles, also known as Drones, draw great interest in Turkey. Various types of unmanned air vehicles are used in scientific research, R&D studies, real estate, sports, travels and hobbies. In line with the legal process issued in 2016, the vehicles weighing over 500 grams are required to be notified. These unmanned air vehicles are registered into the Directorate General of Civil Aviation (SHGM). Moreover, the persons wishing to fly drones either for commercial purposes or as hobbies are obliged to receive the UAV pilot licenses. The applications can be made via the website of SHGM. https://iha.shgm.gov.tr/public 20 TIMES INCREASE The enthusiasm about the unmanned air vehicles was also reflected in the access to SHGM’s website that contains the UAV Registry System. The monthly access to the website remained around 10-15 thousand last year; it reached a monthly average of 300 thousand in 2020. Wishing to find answers to their questions like, “What should I do when I buy a drone?”, “Which type of vehicles are obliged to be registered?”, “Does everyone have to acquire a pilot license?”, “Over which areas are the flights forbidden?” rushed into SHGM’s website. Most of the website visitors applied to become a pilot and within six months, 200 thousand new applications were made to this end. Around 300 thousand people are registered in SHGM’s system, and the system includes over 40 thousand UAVs and 65 thousand certified UAV pilots. COMPULSORY TRAINING COURSES FOR COMMERCIAL FLIGHTS Persons wishing to become a UAV pilot have to acquire certification from the training courses or training institutes authorized by the SHGM. The list of such centers for ones aiming to become a professional UAV pilot for commercial purposes can be viewed at the ‘Authorized Training Institutions’ over SHGM’s website.

25 Mart 2021 Perşembe

HABER: ADEM ORHUN Turkish business realm, making its mark on numerous areas ranging from retails to automotive with its high-quality products, is also quite interested in research and development (R&D) studies. In 2020, the number of R&D centers reached 1.242 from 232 at the end of 2015. Machinery and equipment manufacturing is ranking first in the sectoral breakdown of these centers. Defense industry, remaining at the ninth rank in the list of R&D centers, has been widely benefiting from the works and products from software to electronics. Accelerating its growth rate in Turkey in terms of both main companies and suppliers, the defense industry is constantly revealing new products. A SAHA ISTANBUL MEMBER One of these products has been Turkey’s first armed unmanned surface vessel (AUSV). AUSV is the output of complex R&D studies and the prototype of the AUSV was completed by the end of 2020. Meteksan Savunma and Ares Shipyard have developed this vessel. Meteksan Savunma is a Defence & Aerospace Cluster (SAHA) member with hundreds of member companies from Istanbul and Northern Marmara. The AUSV stands out with its 400km range, 65km/h speed and day/night vision capabilities. COMPOSITE MATERIAL Built from advanced composites, the AUSV can be operated from headquarters and mobile vehicles, or sea platforms such as aircraft carriers or frigates. The vessel will actively perform missions like surveillance, escort missions and strategic infrastructure protection. Manufactured through R&D studies from its hull to the electronics installed, AUSV reveals both prominent companies and the Turkish companies that remain as suppliers in defense industry ecosystem. UNIQUE IN THE WORLD A ULAQ series product, the AUSV can carry out joint operations with unmanned and manned air vehicles. AUSV capable of surveillance with artificial intelligence has no matches in the world. For the R&D centers, please visit: www.sanayi.gov.tr/assets/doc/Ar-Gemerkezleri.xlsx For SAHA Istanbul companies: www.sahaistanbul.org.tr/product-group-search

25 Mart 2021 Perşembe

ADEM ORHUN Covering 15 nations from South East Asia and the Pacific, the Regional Comprehensive Economic Partnership Agreement (RCEP) will be reshaping the course of global trade. RCEP is the free trade agreement signed to date as the 15 member countries account for about 30% ofglobal GDP and nearly one-third of theworld’s population. Having intense trade relationships with the member countries, Turkey is quite close to region covered by the agreement. 3 FTAs IN THE PACIFIC Pacific can be reached from Turkey – living next door to the European Union with a 10-hour’ flight from Istanbul. The Free Trade Agreements signed with three RCEP member countries is another advantage of Turkey. In addition to Singapore remaining at the very center of the RCEP area, Turkey signed FTAs with Malaysia and the Republic of Korea (South Korea). The effective bilateral FTAs with these three countries enable Turkish companies to export goods (or services) to the area free from customs duties or non-tariff barriers to trade. Companies or partnerships established in Turkey will also be entitled to enjoy such advantages. So, Turkey’s agreements on trade and economy include critical benefits for foreign investors. ACCESS TO ADVANTAGES OF RCEP Likewise, Turkish companies founded in RCEP member countries will be allowed to benefit from RCEP agreement. For instance, the modernized rules of origin covered by the RCEP agreement will enable Turkish companies in Singapore to benefit further from the regional supply chain. The regional cumulation provisions will allow businesses to include raw materials and parts sourced from any of the RCEPs as originating content. Moreover, Turkish companies will also benefit from other advantages such as improved market access for the ‘trade in services’ and enhanced investment rules specified for identified markets. A PARTNER FROM EVERY CONTINENT Furthermore, Turkey is a party of 21 Free Trade Agreements in effect. Turkey’s FTA partners are located in a vast geography extending from Chile to Georgia and Israel to EFTA members. The FTA signed with the United Kingdom signed when Brexit became official has been in effect as of 1 January 2021. The FTAs with Lebanon, Sudan and Qatar will enter into force upon completing internal approval processes. Meanwhile, FTA negotiations with Ukraine, Japan, Thailand and Indonesia are being conducted actively. DETAILS IN THE WEBSITE The details of the agreements can be viewed via the Ministry of Trade’s website. Even the official documents on the exemption rates in product groups established with these countries by a company based in Turkey is available for examination. In addition to bilateral FTAs, Turkey’s agreements in various areas contain notable advantages for the companies. The categories of such agreements are as follows: Agreements on the Mutual Encouragement and Protection of Investments Agreements on Trade and Economic Cooperation Agreements on the Prevention of Double Taxation Agreements on Administrative Assistance in Customs TURKEY-MALAYSIA FTA In line with the agreement that entered into effect in 2015, regarding tariff lines 70% of Parties’ customs duties gained duty-free access. Most of the customs duties levied to Turkey were removed; in 2023, all will be eliminated. In terms of the trade in goods, elimination of tariff and non-tariff barriers, rules of origin, customs procedures and cooperation were included in the FTA. English version of the agreement and its addendum: https://ticaret.gov.tr/data/5bfbf9b313b8762fa4955ca0/Malezya%20%C4%B0ngilizce%20Metin.zip TURKEY-SOUTH KOREA FTA The ‘Framework Agreement’ on the gradual liberalization of trade in goods and ‘Agreement on Trade in Goods’ entered into force in 2013. 2018, ‘Agreement on the Trade in Services’ and ‘Agreement on Investment’ were signed. Customs duties on all industrial goods exported from Turkey to South Korea were eliminated. In terms of agricultural products, customs duties on 21 percent of tariff lines were removed. Customs duties applied to the products in the second list will be eliminated in 2023. The customs duties were decreased for the goods in the third list. English version of the agreement and its addendum: https://ticaret.gov.tr/data/5bfbfa8a13b8762fa4955cb0/GuneyKoreIngilizce.zip TURKEY-SINGAPORE FTA In line with the agreement that was signed in 2017, Singapore eliminated the customs duties. The rules to be applied to the services chapter and delivery of services were arranged. International direct investments were incentivized. Public procurement area was regulated in detail. English version of the agreement and its addendum: https://ticaret.gov.tr/data/5bfbf70113b8762fa4955c88/Singapur%20%C4%B0ngilizce.rar TURKEY’S FTA PARTNERS VenezuelaTunisia Kosovo Albania Bosnia Herzegovina EFTA Faroe Islands Morocco Palestine South Korea Georgia Israel Montenegro Macedonia Malaysia Egypt Moldova Mauritius Serbia Singapore Chile

24 Mart 2021 Çarşamba

The experts regard Turkey’s target of putting the Black Sea’s natural gas into service by 2023 quite assertive then again, they find it achievable by exemplifying Egypt’s Zohr field. The Black Sea’s natural gas reserves’ potential effects over import agreements are also on the agenda. ŞEREF KILIÇLI The discovery of 405 billion cubic meters of natural gas at the Sakarya Gas Field off the Black Sea once again prioritized energy in Turkey’s agenda. Turkey’s technical know-how and its future accomplishments are being discussed within this scope, as well as the impact of the energy policies over the economy. Mehmet Öğütçü, Founder and Executive Chair of the Bosphorus Energy Club and Dr. Sohbet Karbuz from Bilkent University Energy Policies Research Center presented statements to Istanbul Commerce on Turkey’s groundbreaking natural gas discovery in the Black Sea and its reflections. IMPORTANT FOR TURKEY Noting that the addition of the new natural gas field to the inventory has been a pleasing and critical development, Mehmet Öğütçü commented: “Discoveries are likely to happen in the future, perhaps, chances are the Black Sea will become a new North Sea. Based on the reserve of 405 cubic meters identified by the state-owned Turkish Petroleum Corporation (TPAO), this source would not be bringing a ‘game-changing’ advantage in a global scale for the global proven natural gas is 198.8 trillion cubic meters. With38 trillion cubic meters, Russia has the largest reserve. Middle East is estimated to have a reserve of 75.6 trillion cubic meters. On the other hand, the reserve of the Eastern Mediterranean is 3.5 trillion cubic meters which equals the yearly consumption of the world. USA is the leader in terms of natural gas production with 921 billion cubic meters. Meanwhile, Turkey’s most significant natural gas supplier Russia’s annual natural gas production is 679 billion cubic meters. These statistics reveal the rather modest size of Turkey’s discovery in the Black Sea on a global scale. However, when evaluated in Turkey’s scale, which is capable of producing merely 2 percent of its yearly demand of 48 billion cubic meters, it is a very critical development.” YEARLY PRODUCTION FORECAST Mentioning that the production from the gas field in Sakarya in the Black Sea would become a tool in decreasing Turkey’s foreign dependency on natural gas, Dr. Sohbet Karbuz underlined the probability of achieving other discoveries with the momentum brought by this accomplishment. Dr. Karbuz added, “One of the most significant outcomes of the Sakarya field is its achievement of overcoming the ‘no oil and natural gas reserves exist in Turkey’ prejudice.” Commenting on the issue of yearly natural gas production from the new reserve, Dr. Karbuz continued: “It would not be right to speak of figures; we are at the bottom of the ladder. Then again, we may talk about certain exemplary cases. For instance, the Tamar field discovered in 2009 in Israel has a yearly natural gas production plan for 10 billion cubic meters. This field is also in deepwater and more or less, it has the same volume of gas as the Sakarya field. Producing even less than 10 billion cubic meters would also be critical for us. Another example is the Aphrodite gas field in Southern Cyprus. This field’s reserve is lower than half of Sakarya’s reserve, yet the field development plan was drawn up to produce yearly 6 billion cubic meters of natural gas. Therefore, we may claim that Turkey would be producing 6 to 10 billion cubic meters of natural gas from the Sakarya field per year.” A COOPERATION OPPORTUNITY FOR GLOBAL COMPANIES Mehmet Öğütçü’s comments on the discussions about cooperation with the global companies for the production process of the natural gas are as follows: “The discovery, its extraction, removal of sulphur, finding markets, its transportation cannot be achieved all at once. Even if all goes well, hosting countries’ enjoying the gains achieved by operating the resources will take a minimum of ten years. Without the essential finance, technology, know-how and experiences, success in Black Sea’s extremely challenging and over-costing surface and underwater conditions is more difficult than the Mediterranean. Therefore, cooperation or partnership with global companies is inevitable, particularly if production is launched by 2023. The present sources of the state-owned Turkish Petroleum Corporation (TPAO) may fail to suffice; they have to be strengthened severely. Perhaps, there is an opportunity for transforming TPAO and BOTAS, which are already planned to be offered to the public into globally competitive companies.” AFFECTS ON PREVIOUS CONTRACTS Regarding the effects of the natural gas to be extracted in the Black Sea on Turkey’s contracts with countries such as Russia and Iran or its contracts to be renewed, Dr. Sohbet Karbuz said: “A major part of the contracts of Turkey’s companies with foreign suppliers will terminate in the next five years. Yearly 18 cubic meter part of this will be ending by the end of 2021. Since the Shah Deniz-2 will be replace the natural gas extracted from the first phase of Shah Deniz through TANAP, the contracts on yearly 11.6 cubic meters should be considered. Of course, private and official projections on the size of Turkey’s natural gas demand in the upcoming years. Renewing the contract for an amount equal to the volume we get when the volume of natural gas produced from Sakarya gas field is deducted from this demand projection or extending it for a short while may be in question. Sakarya gas field will be empowering Turkey in terms of identifying the conditions or the price mechanism in the contract to be extended. This also applies to the contracts that will expire in the upcoming years. In other words, Sakarya gas field will increase Turkey’s bargaining power.” HOW IS THE 3-YEAR’ TARGET POSSIBLE? Stating that the sector’s average was 5 to 7 years for moving onto production after the discovery, Dr. Karbuz stressed that the same period did not apply for the Sakarya gas field and added: “Finding buyers and markets will not be a problem, nor will obtaining finance. There will be no wait for the investment decisions or red tape. A production platform will be developed and a pipeline for transporting the gas to the land will be built. Already there are several facilities on the land. Foreign service provider companies may be found easily for these tasks, tenders may be carried out, or partnerships may be formed. Therefore, it is possible to introduce this natural gas to the sector towards the end of 2023. Zohr field, discovered in Egypt in 2015, is a good example to illustrate that the production can be accomplished way faster than the sector average. With over double the volume of the Sakarya field, this field is the largest natural gas field to be discovered in the Mediterranean. There are merely 28 months between the date of discovery and the launch of the natural gas flow. Why shouldn’t Turkey achieve the same?”

24 Mart 2021 Çarşamba

SÜMEYRA YARIŞ TOPAL Turkey’s drilling activities in the seas started 47 years ago with a research ship leased from Norway. The naval drills in the Blue Homeland, Turkey launched in 1974 in the Aegean Sea with a hired Norwegian ship with a Turkish flag, continued with HORA granted by Germany and drills are presently executed in the Black Sea and the Mediterranean by our inventory’s indigenous actors. The story of HORA - the first ship of the inventory - lies beneath the fleet that is Turkey’s source of pride. Here goes the story of Turkey’s seismic and drillships that started with rented ships and recently discovered natural gas through local resources: RENTED SHIP Turkey set to launch naval drills after the Cyprus Peace Operation of 1974. Since there were no drillships in the inventory, one had to be rented from Norway. This Turkey-flagged Norwegian vessel had to stop its journey in the Aegean Sea as Norway’s government decided to recall the ship though the payment was received. Therefore, Turkey, without a vessel for drilling activities, set the sails to find a new boat. Granted by Germany to Turkey after World War I, HORA in Turkey’s inventory had been the solution to the problem. Seismic exploration devices were installed to HORA which was designed to carry out search and rescue operations and thus, HORA’s adventure at the Aegean Sea began. In the later years, registered in the General Directorate of Mineral Research And Exploration’s (MTA) inventory HORA’s name was changed to MTA-1 SISMIK 1. For 28 years, in other words, from 1976 to 2004, HORA kept the Turkish flag flying at the Aegean Sea. SECOND SEISMIC EXPLORATION SHIP The second seismic exploration ship in the inventory was the MTA-SELEN. Included in the inventory in 2011, this ship is still in service for subsea geophysical exploration in shallow waters from the shoreline until the deep waters in the seas surrounding Turkey. The vessel conducted seismic exploration activities in the Aegean Sea last year. LAUNCH OF ORUC REIS ORUC REIS has been the first vessel to elate Turkey within its inventory of seismic and drillships. The procurement project of ORUC REIS was carried out by MTA and the Presidency of Defence Industries. This ship’s construction started in 2012. Completing her construction based entirely on local resources, ORUC REIS began to perform its tasks in 2019. Standing out with its unique features that are rarely seen among the seismic exploration vessels in the world, in addition to 3D sampling at the seabed in the high-seas, ORUC REIS is capable of exploring natural resources in the seas such as oil, natural gas and coal. ORUC REIS is presently active in the Eastern Mediterranean. THE CHAMPION OF OIL Another ship in the inventory is BARBAROS HAYREDDIN PASA, which was procured in 2012 and started to be operated by the Turkish Petroleum Corporation (TPAO). This seismographic research vessel was built in Dubai and was procured for US$130 million by the end of 2012. Capable of operating over glacial surfaces, the vessel also stands out with its environmentally-friendly features. The ship currently carries out oil and natural gas exploration activities in the waters around Famagusta and Lebanon. A MILESTONE IN NATIONAL RESOURCES The most famous champion of the inventory that filled Turkey with joy is the FATIH drillship. Turkey’s first national drillship, FATIH, was included in the body of TPAO in 2017. The master of the seas started to operate its first deep-water drilling in Alanya-1 field on 29 October 2018, then moved onto its first national deep-water drilling off Zonguldak and has been conducting drilling there since 20 July. Nearly a month later, she actually became the FATIH (the conqueror) of the seas when it discovered a natural gas reserve of 320 billion cubic meters. OPERATING AT THE EASTERN MEDITERRANEAN YAVUZ drillship is another member of the TPAO’s family of drillships. Purchased for US$262.5 billion in 2018 by the TPAO, YAVUZ was launched on 20 June 2019. With twin-gun turrets, the vessel was formerly active in various countries, Tanzania, Kenya, Malaysia and the Philippines being in the first place. One of the 16 ships in the world with such features, YAVUZ, can drill high-pressure conditions and even in the 6-meter’ high waves. The vessel is presently conducting oil exploration activities in the Eastern Mediterranean. 6TH GENERATION ULTRA DEEP-WATER DRILLSHIP The most recent vessel of the Blue Homeland heroes is the KANUNI drillship. The construction of the ship was completed in 2012 in South Korea. TPAO procured the vessel in 2020 for US$37.5 million. KANUNI weighs 60 thousand 316 gross tons and the drillship’s length is 227 meters, her height is 114 meters and her width is 42 meters. The tower assembly, cruising test, installation of the drilling equipment and the well security system’s maintenance will be completed at the Filyos Port. The sixth-generation ultra deep-water drillship can carry out drilling wells up to 11 thousand 400 meter at a sea depth up to 3 thousand meters. KANUNI will start performing its first drilling activities in the first months of 2021 with FATIH.

24 Mart 2021 Çarşamba