Exxon Mobil Corp. (XOM) said Monday the Turkish government has approved an agreement between the oil giant and the Turkey's national oil company TPAO to explore two deepwater blocks in the Black Sea.
The move would help Exxon Mobil, the largest U.S. oil company by market value, to expand its presence into Black Sea, an area considered a frontier for exploration but that is becoming increasingly attractive as other oil-rich nations around the world become more restrictive.
The Irving, Texas, company said in November signed an agreement with TPAO, but the deal still needed the blessing of Turkey's government, which the company recently obtained.
"We wish to thank the Turkish government for this approval and with it we look forward to exploring with TPAO the hydrocarbon potential of these deepwater Black Sea blocks," Russ Bellis, exploration director for Exxon Mobil International Limited, said in a prepared statement.
Turkey is a net importer of oil and it is accelerating its efforts to find oil in the Black Sea and become energy independent. The government hopes that the Black Sea may be like the Caspian Sea, rich in oil reserves.
Exxon Mobil will be the operator of the project for the initial exploration phase, taking a 50% stake in the two-million-acre Samsun block and the eastern part of the five-million-acre 3921 block. Water depths for the blocks reach about 6,500 feet.
In December 2008 Exxon Mobil announced that it had further expanded its presence in the Black Sea by signing an agreement with Romanian oil company Petrom to explore deepwater portions of the Neptun Block offshore Romania.
Shares of Exxon Mobil were recently down 36 cents, or 0.5%, at $72.60.