Team size: 20

What are the most significant cases or transactions that your legal team has recently been involved in?

Tüpraş is the largest industrial company in Türkiye, engaging in a regulated sector where almost all its activities and investments are subject to approval or permit processes from public institutions such as the Energy Market Regulatory Authority (EMRA), the Capital Markets Board of Turkey (CMB), and the Turkish Competition Board (TCB). While these approvals and permissions are crucial, their fees also constitute a significant cost and should be calculated in accordance with the principles described in the applicable legislation. Incorrect or illegal calculation of these fees would violate Tüpraş’s policies and procedures and its commitments to its investors.

In this respect, disputes may arise with public institutions regarding how these fees should be calculated, as the applicable legislation might be vague or open to interpretation. In such circumstances, the dispute may result in litigation, and being able to present your reasoning before the court within a limited period and in a clear manner against a governmental authority can be quite challenging. One of the most significant cases we have been involved is that the court decisions obtained in such a recent dispute have set a precedent that will have a significant impact on the future of the business and other energy companies in Türkiye.

On the other hand, in line with the strategic transformation plan announced at the end of 2021, Tüpraş is undergoing a transformation aimed at achieving a carbon-neutral world by 2050. While still meeting Türkiye’s energy needs, Tüpraş now focuses on producing carbon-neutral energy types for the future. Tüpraş is focusing on new projects and investments with the aim of “Sustainable Refining.” Our legal team is revising existing contracts, such as EPCs, construction, and license agreements, to include clauses for sustainability, energy efficiency, and increased productivity. We also provide legal assistance for structuring investments according to local and international sustainability standards.

Furthermore, Tüpraş is aware of its significant influence in the transition to a low-carbon economy and is focusing on biofuels. Tüpraş is working on environmentally friendly fuel production and aims to become Türkiye’s leading sustainable aviation fuel (SAF) manufacturer using waste such as UCO. Our legal team has been involved in negotiating contracts and tender documents for basic engineering work, design, and licensing agreements for the first SAF production at our Izmir refinery. Additionally, the team contributed to the development of Türkiye’s legal infrastructure for SAF production. This was an important project, aligning with the company’s goals and establishing a legal framework compatible with global standards.

What strategic priorities are guiding you and your team in 2024?

We have a keen interest in solutions that help our legal team learn and deliver better results to their business partners and the organisation. Working in a constantly evolving field, it is important for us to develop our knowledge and skills. Our legal team supports innovative and value-creating projects, often facing little legislation or industry precedent. To overcome this, we invest in training and learning. We offer inclusive training in new areas of law, innovative projects, and current legal affairs on a periodic and as-needed basis.

2024 will be a year of testing AI and digitalisation for our internal applications. This will require an investment of departmental resources and must be done within a strong risk management framework. Ignoring or forbidding could be detrimental for in-house lawyers. Our legal and compliance teams have dedicated significant time to AI and automation to improve our internal processes. Contract lifecycle management (CLM) is also taking on renewed focus and urgency. As contracts become more complex with evolving terms to manage data, security, privacy, and access, we have been working with our IT teams to enhance our CLMs in accordance with our internal processes.

As pioneers and shepherds for the business in Turkey, we are aware of our responsibilities towards other companies, our customers, employees, shareholders, suppliers, and business partners, as well as competitors and society overall. We manage our Ethics and Compliance unit in line with standards, meeting the company’s legal responsibilities. Our priorities include creating a strong compliance culture and continuously improving existing standards within the company and among our business partners and stakeholders.

Do you have a cause, business-related or otherwise, that you are passionate about?

Our team prioritises productivity, agility, alignment with company strategies, resource allocation, and skill improvement this year. Like Tüpraş’s agile business plan, we adapt to evolving needs and trends, ensuring our legal department remains flexible and scalable. We continually evaluate strengths, weaknesses, and growth opportunities, incorporating regulatory changes, industry trends, new legal tech, and emerging challenges.

This year, our focus will increasingly be on embracing technical innovations to streamline our internal processes and lead legal developments supporting improvements in areas like green energy, ESG, carbon-neutral solutions, and climate change.

Additionally, prioritising ethical principles as the “building blocks of company culture” is a fundamental indicator of corporateness and institutionalisation. When all employees, starting from top managers, adopt an ethical culture, companies are better positioned to meet the expectations of internal and external stakeholders, gain a reputation for reliability, and achieve a long-term competitive advantage. Considering the chain effect of this cultural reflection on third parties with whom it has business relations, it is crucial for Tüpraş to advance ethical principles nationwide. Transparency, fairness, and accountability in relationships with stakeholders and business partners, along with compliance with legislation, contractual commitments, and the company’s Ethical Principles, are core principles embraced by Koç Group companies. Our primary duty in 2024 is to ensure that all Tüpraş employees adhere to these principles and address any questions regarding them.