BOTAŞ procurement rules updated by presidential decree

A new presidential decree, published in Turkey's Official Gazette, establishes updated procedures for procurement by BOTAŞ, the country's national energy company. This decision, made under Article 3(m) of Law No. 4734 on Public Procurement, governs how BOTAŞ will acquire natural gas from both domestic and international sources.

The decree specifies that BOTAŞ will conduct comprehensive research and evaluations for all natural gas purchases. This includes analyzing offers received for previous procurements, monitoring changes in international market dynamics, and assessing the current activities of market players. These assessments will primarily be conducted through international natural gas market publications.

Furthermore, the new regulations introduce stricter vetting for potential suppliers. Companies that have previously breached contracts with BOTAŞ may be removed from the eligibility list based on the company's evaluation. Conversely, new companies can be added to the eligibility list with the approval of the BOTAŞ Board of Directors, considering market conditions, emerging companies, and BOTAŞ's strategic procurement goals. The criteria for adding or removing companies will be based on impartial evaluation standards set by BOTAŞ.

The decree also addresses specific procurement methods, including direct procurement and negotiation without a tender. It further outlines prohibited practices and related penalties, providing a clear framework for BOTAŞ's energy acquisition processes.