The Energy Market Regulatory Authority (“EPDK”) published in Official Gazette No. 32709 dated 01/11/2024 an amendment to the Petroleum Market Licensing Regulation (“Licensing Regulation”), providing that applicants’ minimum paid-in capital would be determined by the Energy Market Regulatory Board (“Board”) and that licences would be terminated for failure to meet the required capital.
Board Decision No. 12980 dated 07/11/2024, published in Official Gazette No. 32717 dated 09/11/2024 (“Board Decision”), established minimum paid-in capital rules for refining, transmission, storage, processing, distribution and bunker delivery licences under Article 7(7)(a) of the Licensing Regulation.
This briefing examines minimum paid-in capital obligations for licence applications and licence holders under the Board Decision.
I. Scope
The Board Decision covers applications and existing holders of refining, transmission, storage, processing, distribution and bunker delivery licences, excluding state economic enterprises.
II. General Principles
Except for state economic enterprises, the minimum paid-in capital required at application and throughout the licence term is set as follows:
| Licence type | Paid-in capital |
|---|---|
| Refining (operational) | 375.000.000,00 TL |
| Refining (under construction) | 75.000.000,00 TL |
| Transmission | 2.000.000,00 TL |
| Storage | 3.000.000,00 TL |
| Processing | 1.500.000,00 TL |
| Distribution | 100.000.000,00 TL |
| Bunker delivery (marine and/or aviation refuelling) | 6.000.000,00 TL |
| Bunker delivery (lubricant supply) | - |
Refining licence holders must submit documents certified by a sworn financial adviser to EPDK by the end of the calendar year following commencement of operations, confirming the minimum capital required for operating refineries.
III. Sanctions
Under Article 5(6) of the Licensing Regulation, failure to meet paid-in capital requirements leads to termination of the licence under Article 17(1)(e).
IV. Effective Date
The Board Decision, published in the Official Gazette on 09/11/2024, took effect on 01/11/2024.
Applications pending on the effective date will continue to be examined after applicants submit sworn-financial-adviser-certified documents issued within the preceding three months confirming the required minimum capital.
Refining and distribution licence holders licensed before the Decision took effect must submit such documents, issued within the preceding three months, to EPDK by 01/06/2026.