“I shall triple the value of the company”

Melih Türker is the new CEO of Petrol Ofisi… Türker began his new job in June and is very upbeat. He says that his target is to double or triple the value of Petrol Ofisi within 5-6 years. He states that they are trying to create an integrated energy company which has distribution, refining and exploration divisions. He says that they will evaluate opportunities in Turkey’s neighborhood with a view to becoming a regional power. Türker says: “My plan and my vision is to set out with my colleagues to make Petrol Ofisi the leader in every segment.”

In June Melih Türker, a name which was already well-known in the fuel oils sector, was appointed as CEO of Petrol Ofisi, the second largest company in Turkey. He says that they are trying to create an integrated energy company which has distribution, refining and exploration divisions. He also notes that they will continue their efforts to make it a regional player.

“My goal is to at least triple Petrol Ofisi’s current value within 5-6 years and then to increase it still further in the following years,” says Melih Türker and he underlines that they will evaluate opportunities that appear in Turkey’s neighborhood. “There are potential locations in our neighborhood we shall utilize our experience and abilities in Turkey in fuel retailing,” says Türker. He explains his vision of becoming a major energy player as follows: “This means integration and securing a presence in new fields, new locations and new businesses in order to ensure that Petrol Ofisi becomes the leader in its region.”

Petrol Ofisi’s new CEO Melih Türker gave his first interview to Capital. Here are  Türker’s answers to our questions:

* In terms of turnover you are $5 billion bigger than your nearest rivals. You are the leader in many categories. How does such a company grow?
You are looking at one aspect of our business and the fact that we have a high market share in total fuels means that we are the leader. Segmentation is very important in our business. What are you doing, to what extent are you the leader in which segment, in which customer group? When you make such a segmentation then, of course, Petrol Ofisi is the overall leader. But I believe that in certain segments there is a considerable potential for Petrol Ofisi to grow much more. The research we have conducted tells us that in certain areas of the retailing segment, on certain subjects, customers prefer our rivals. On some subjects they prefer us. My plan and my vision is to set out with my colleagues to ensure that, when you put all of these together, Petrol Ofisi will be the leader in every segment. There are a lot of things we want to do in terms of our portfolio. We are thinking about refining, exploration and production. I believe that we shall realize these very shortly and I think that we have a team which is qualified to do this.”

* You said that there was a great potential for growth. Where is this potential?
We have taken a pre-license for Ceyhan refinery. Of course, we have yet to take the final investment decision about the refinery. The feasibility studies are continuing. We are trying to obtain an EIA. After that we shall sit down with our partners and make a decision, taking into account how we can realize this investment and, if necessary, with whom. Our goal is, in one way or another, to be the owner of a refinery in the Ceyhan basin.

We have things to do in terms of making Petrol Ofisi into a regional power and at the moment we are just starting out in this regard. The final links in terms of integration are exploration and production. We are actively working on this issue at the moment. We think that Petrol Ofisi entering the exploration and production business will complete the integration.

* What does being a regional power mean in energy? I mean, what will you do that will make you a regional power?
We say that we want to utilize the areas in which Petrol Ofisi is strong and become a strong player in the region. Petrol Ofisi has a value. My goal is to at least triple Petrol Ofisi’s current value within the next 5-6 years and afterwards to increase it still further. When you look at it, this is very possible. Because we want to utilize opportunities in the region, become an integrated company and make the right decisions at the right time and we have begun to do this.

* Is Turkey a country of the future in energy?
That is the picture when you look at any field in energy. There are two basic reasons for this. The first is Turkey’s opportunities as Turkey. The factors here include its human resources and its potential for development. The second is Turkey’s very important strategic location. Turkey’s name is mentioned in one way or another in very natural gas pipeline or oil pipeline project. This is a very important consideration in energy. There are significant opportunities in everything from electricity to fuels, natural gas distribution and forwarding. As a result, many companies are interested in Turkey. Investors want to make the most of the money they have and they are looking to see where they can secure the highest rate of return. Turkey has such a potential. This is why they are coming to Turkey.

Ebru Firat
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