Amendments Made in the Petroleum Market Licence Regulation
In the sixth paragraph of Article 5 titled ‘Licence’ of the Petroleum Market Licence Regulation, it was stipulated that license holders were obliged to provide and maintain the minimum paid-in capital amount specified in subparagraph (a) of the seventh paragraph of Article 7 of this Regulation.
Subparagraph (a) of the seventh paragraph of Article 7 of the Regulation stipulated the application conditions and qualifications for refinery, transmission, storage, processing, distributor and export licences in terms of type of company and amount of paid-in capital to be provided. Accordingly, it was stated that applicant legal entity was obliged to be a joint stock company or a limited liability company and amount of paid-in capital required for each type of licence was regulated separately.
With the amendment made by the Regulation Amending the Petroleum Market Licence Regulation published in the Official Gazette dated 01/11/2024 and numbered 32709, the sixth paragraph of Article 5 of the Petroleum Market Licence Regulation has been amended as follows ‘Licence holders are obliged to provide and maintain the minimum paid-in capital amount determined by Board Decision. For the licence holders who fail to provide paid-in capital amount, the licence termination procedure shall be applied in accordance with subparagraph (e) of the first paragraph of Article 17 of this Regulation.’
With this amendment, from now on, licence holders shall provide and maintain minimum paid-in capital amount determined by board decision of the Energy Market Regulatory Authority ("EMRA"); otherwise, licence holders shall be subject to licence termination by EMRA.
On the other hand, in parallel with the amendment made in the sixth paragraph of Article 5 of the Regulation, subparagraph (a) of the seventh paragraph of Article 7 has been amended as follows “a) For refiner, transmission, storage, processing, distributor and export delivery licences; applicant legal entity is obliged to be a joint stock company or limited liability company in accordance with the provisions of the Turkish Commercial Code dated 13/1/2011 and numbered 6102 and to provide minimum paid-in capital determined by Board Decision.”
With this amendment, the regulation stipulating that applicant legal entity is obliged to be a joint stock company or a limited liability company has been preserved, but amount of paid-in capital required to be provided for each licence type has been removed. From now on, minimum paid-in capital required to be provided by applicants shall be determined by EMRA board decision and applicants shall be required to provide minimum paid-in capital amount determined by EMRA.
On the other hand, since the requirement of being a capital company is not required for dealership, transportation, lubricant production and free user licences, in other words, natural persons can also operate by obtaining these licences, no minimum capital obligation is imposed for these licences.
For more information and support, please contact us at info@lbfpartners.com.
LBF Partners
Subparagraph (a) of the seventh paragraph of Article 7 of the Regulation stipulated the application conditions and qualifications for refinery, transmission, storage, processing, distributor and export licences in terms of type of company and amount of paid-in capital to be provided. Accordingly, it was stated that applicant legal entity was obliged to be a joint stock company or a limited liability company and amount of paid-in capital required for each type of licence was regulated separately.
With the amendment made by the Regulation Amending the Petroleum Market Licence Regulation published in the Official Gazette dated 01/11/2024 and numbered 32709, the sixth paragraph of Article 5 of the Petroleum Market Licence Regulation has been amended as follows ‘Licence holders are obliged to provide and maintain the minimum paid-in capital amount determined by Board Decision. For the licence holders who fail to provide paid-in capital amount, the licence termination procedure shall be applied in accordance with subparagraph (e) of the first paragraph of Article 17 of this Regulation.’
With this amendment, from now on, licence holders shall provide and maintain minimum paid-in capital amount determined by board decision of the Energy Market Regulatory Authority ("EMRA"); otherwise, licence holders shall be subject to licence termination by EMRA.
On the other hand, in parallel with the amendment made in the sixth paragraph of Article 5 of the Regulation, subparagraph (a) of the seventh paragraph of Article 7 has been amended as follows “a) For refiner, transmission, storage, processing, distributor and export delivery licences; applicant legal entity is obliged to be a joint stock company or limited liability company in accordance with the provisions of the Turkish Commercial Code dated 13/1/2011 and numbered 6102 and to provide minimum paid-in capital determined by Board Decision.”
With this amendment, the regulation stipulating that applicant legal entity is obliged to be a joint stock company or a limited liability company has been preserved, but amount of paid-in capital required to be provided for each licence type has been removed. From now on, minimum paid-in capital required to be provided by applicants shall be determined by EMRA board decision and applicants shall be required to provide minimum paid-in capital amount determined by EMRA.
On the other hand, since the requirement of being a capital company is not required for dealership, transportation, lubricant production and free user licences, in other words, natural persons can also operate by obtaining these licences, no minimum capital obligation is imposed for these licences.
For more information and support, please contact us at info@lbfpartners.com.
LBF Partners
s.kayikci@lbfpartners.com