Energy Market Regulatory Authority Updates Minimum Paid-in Capital Requirements for Legal Entities Holding Licenses in the Petroleum Market
As is known, with the amendments made by the "Regulation on Amendments to the Petroleum Market Licensing Regulation," published in the Official Gazette No. 32709 on 01/11/2024, the following changes were made to the Petroleum Market Licensing Regulation:
The sixth paragraph of Article 5: "License holders are obligated to provide and maintain the minimum paid-in capital amount determined by the Board's decision. License holders who fail to meet the required paid-in capital amount shall have their license terminated in accordance with the provisions of Article 17, paragraph 1(e) of this Regulation."
The seventh paragraph of Article 7, subparagraph (a): "a) For refining, transmission, storage, processing, distribution, and delivery licenses, the applicant legal entity must be a joint-stock company or a limited liability company in accordance with the provisions of the Turkish Commercial Code No. 6102 dated 13/01/2011, and must meet the minimum paid-in capital determined by the Board's decision."
Following these amendments, the Energy Market Regulatory Authority (EMRA) issued the following decisions in accordance with the changes in the Petroleum Market Licensing Regulation:
12980 Decision regarding "Minimum Paid-in Capital for License Applications and License Holders"
12981 Decision regarding the amendment of Decision No. 5352
These decisions were published in the Official Gazette No. 32717 on 09/11/2024 and have come into force. The details of these decisions are outlined below:
1. 12980 Decision
With the 12980 Decision, regulations regarding the minimum paid-in capital for refining, transmission, storage, processing, distribution, and delivery licenses, as outlined in Article 7, paragraph 7(a) of the Petroleum Market Licensing Regulation, were made.
According to the first paragraph of Article 4 of the 12980 Decision, the minimum paid-in capital amounts for the types of licenses listed in Article 7, paragraph 7(a) of the Petroleum Market Licensing Regulation (excluding public economic enterprises) have been revised. These amounts must be provided at the application stage and maintained during the licensing process, as shown in the table below:
In the second paragraph of Article 4 of the 12980 Decision, it is stipulated that the holders of refining licenses are required to submit to the Energy Market Regulatory Authority (EMRA) a sworn financial consultant-approved document indicating that they meet the minimum paid-in capital required for active refineries, no later than the end of the calendar year following their commencement of operations.
Additionally, according to the temporary provisions introduced by the 12980 Decision, refining and distribution license holders who obtained their licenses before the publication date of the 12980 Decision, and who are required to meet the minimum paid-in capital amount, must submit their sworn financial consultant-approved balance sheets, which have been prepared within the last three months, to EMRA by 01/06/2024. For distribution license applications that are still pending at the time of publication of the 12980 Decision, the evaluation and review of the applications will continue after the submission of the sworn financial consultant-approved balance sheets to EMRA.
The 12980 Decision entered into force on 09/11/2024, the publication date, and is valid from 01/11/2024.
2. 12981 Decision
For legal entities applying for distribution and delivery licenses in the petroleum market, the minimum paid-in capital required for distributors, which was previously set at 37,500,000 TL, has been revised to 125,000,000 TL under Article 1 of the 12981 Decision.
Moreover, under the temporary provisions introduced by the 12981 Decision, holders of distribution licenses obtained before the publication date of Article 1 must submit their sworn financial consultant-approved balance sheets, indicating that they meet the required total assets amount, to EMRA by 01/06/2026. For distribution license applications still pending at the time of publication of the 12981 Decision, the review and evaluation will continue after the submission of the sworn financial consultant-approved balance sheets to EMRA.
The 12981 Decision entered into force on 09/11/2024, the publication date, and is valid from 01/11/2024.
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The sixth paragraph of Article 5: "License holders are obligated to provide and maintain the minimum paid-in capital amount determined by the Board's decision. License holders who fail to meet the required paid-in capital amount shall have their license terminated in accordance with the provisions of Article 17, paragraph 1(e) of this Regulation."
The seventh paragraph of Article 7, subparagraph (a): "a) For refining, transmission, storage, processing, distribution, and delivery licenses, the applicant legal entity must be a joint-stock company or a limited liability company in accordance with the provisions of the Turkish Commercial Code No. 6102 dated 13/01/2011, and must meet the minimum paid-in capital determined by the Board's decision."
Following these amendments, the Energy Market Regulatory Authority (EMRA) issued the following decisions in accordance with the changes in the Petroleum Market Licensing Regulation:
12980 Decision regarding "Minimum Paid-in Capital for License Applications and License Holders"
12981 Decision regarding the amendment of Decision No. 5352
These decisions were published in the Official Gazette No. 32717 on 09/11/2024 and have come into force. The details of these decisions are outlined below:
1. 12980 Decision
With the 12980 Decision, regulations regarding the minimum paid-in capital for refining, transmission, storage, processing, distribution, and delivery licenses, as outlined in Article 7, paragraph 7(a) of the Petroleum Market Licensing Regulation, were made.
According to the first paragraph of Article 4 of the 12980 Decision, the minimum paid-in capital amounts for the types of licenses listed in Article 7, paragraph 7(a) of the Petroleum Market Licensing Regulation (excluding public economic enterprises) have been revised. These amounts must be provided at the application stage and maintained during the licensing process, as shown in the table below:
| License Type | Paid-in Capital Amount |
| Refiner (Operational) | TRY 375.000.000 |
| Refinery (Under Construction) | TRY 75.000.000 |
| Transmission | TRY 2.000.000 |
| Storage | TRY 3.000.000 |
| Processing | TRY 1.500.000 |
| Distributor | TRY 100.000.000 |
| Bunker Delivery (Maritime and/or aviation fuel supply) | TRY 6.000.000 |
| Bunker Delivery (Lubricant Supply) | - |
In the second paragraph of Article 4 of the 12980 Decision, it is stipulated that the holders of refining licenses are required to submit to the Energy Market Regulatory Authority (EMRA) a sworn financial consultant-approved document indicating that they meet the minimum paid-in capital required for active refineries, no later than the end of the calendar year following their commencement of operations.
Additionally, according to the temporary provisions introduced by the 12980 Decision, refining and distribution license holders who obtained their licenses before the publication date of the 12980 Decision, and who are required to meet the minimum paid-in capital amount, must submit their sworn financial consultant-approved balance sheets, which have been prepared within the last three months, to EMRA by 01/06/2024. For distribution license applications that are still pending at the time of publication of the 12980 Decision, the evaluation and review of the applications will continue after the submission of the sworn financial consultant-approved balance sheets to EMRA.
The 12980 Decision entered into force on 09/11/2024, the publication date, and is valid from 01/11/2024.
2. 12981 Decision
For legal entities applying for distribution and delivery licenses in the petroleum market, the minimum paid-in capital required for distributors, which was previously set at 37,500,000 TL, has been revised to 125,000,000 TL under Article 1 of the 12981 Decision.
Moreover, under the temporary provisions introduced by the 12981 Decision, holders of distribution licenses obtained before the publication date of Article 1 must submit their sworn financial consultant-approved balance sheets, indicating that they meet the required total assets amount, to EMRA by 01/06/2026. For distribution license applications still pending at the time of publication of the 12981 Decision, the review and evaluation will continue after the submission of the sworn financial consultant-approved balance sheets to EMRA.
The 12981 Decision entered into force on 09/11/2024, the publication date, and is valid from 01/11/2024.
For more information and support, please contact us at info@lbfpartners.com.
LBF Partners Law Firm
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