Petoil was established in 1990 as part of Pet Holding.
Petoil commenced petroleum operations in 1990 with two separate licences in the South-Eastern Anatolia Region. These licence areas were subsequently abandoned after being deemed commercially unviable. Between 2004 and 2009, a total of nine exploration licences were acquired, two in South-Eastern Anatolia and seven in the Black Sea. Following geological studies, it was determined that these areas were also commercially unviable, and the licences were relinquished.
Petoil began work on different blocks in the northern Caspian Sea in 1992 and established a joint venture with TPAO. The partnership, established with the participation of the Kazakh Ministry of Geology and named Kazakturkmunay Joint Stock Company, was granted seven exploration blocks in the region. However, due to a disagreement with TPAO (the majority shareholder in the partnership) over the exploration programme strategy, Petoil transferred its shares to TPAO. In 1993, Petoil acquired the operating rights for the Karakuduk field and established the Karakudukmunay Joint Venture Group with a Kazakh partner. Petoil later transferred its shares in this joint venture to Chaparral Resources. Petoil provided well completion services to oil exploration and production companies in Kazakhstan.
Petoil was the first Western company to enter Azerbaijan. Through a Joint Venture Company established with Azerbaijan's State Oil Company (SOCAR) in 1992, the Mishovdag and Kelameddin oil fields, comprising a total of 400 wells, were rehabilitated and operated with over 900 employees. This Joint Venture Company was restructured in 2000 with the participation of American Moncrief Oil International under a Production Sharing Agreement, and in 2003, Petoil transferred its shares to Canadian Nations Energy.
The first international oil company to enter Northern Iraq was Petoil. As of January 2003, a licence covering a very large area was obtained through a Production Sharing Agreement signed with officials of the Kurdistan Regional Government. Two wells were drilled and one re-entry was made in Pulkhana. However, this field was later reduced in size, and in 2007, the Shakal licence was granted, and exploration and production activities commenced in the Block. In 2006, a new Production Sharing Agreement granted the Bina Bawi licence to A&T Petroleum Limited, wholly owned by Petoil, and its subsidiary A&T was appointed as the operator. Petoil remained as the operator in Bina Bawi with three wells. In 2009, the Chia Surkh and Pulkhana Production Sharing Agreements were signed. In 2011, the operatorship of Bina Bawi was transferred to another partner. Petoil subsequently withdrew from the Bina Bawi, Shakal and Pulkhana projects.
Yemen was first visited in 2004, and exploration blocks 39 and 3 were evaluated. Petoil, which had the sole negotiating rights for these fields, deemed Block 39 unprofitable and abandoned it due to the lack of infrastructure in the region and, after technical studies were performed, discovered this work would be high risk. A Production Sharing Agreement covering an area of 2,950 km² was signed in 2005, with a 34% stake acquired in Block Jardan 3. Following the completion of seismic studies, the Tubb'a-1 well was drilled in 2009, and gas and condensate were discovered in the fractured volcanic basement rocks, which were the primary targets. Petoil transferred its shares in Yemen to OMV in 2011.
Petoil was the first Turkish company to invest in unconventional oil exploration and production in the US. In 2015, Petoil acquired the Falls City field in Texas, USA, and as an investor, drilled a horizontal well in a formation where unconventional production methods had not been previously tested, applying a 30-stage fracturing technique. Although oil production was achieved, the project was abandoned due to both production falling below expected levels and low oil prices.
