Gulf Keystone Petroleum Ltd. Shaikan Crude Export Route Update (6407X)
February 23 2017 - 2:03AM
UK Regulatory
TIDMGKP
RNS Number : 6407X
Gulf Keystone Petroleum Ltd.
23 February 2017
23 February 2017
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Shaikan Crude Export Route Update
Gulf Keystone, operator of the Shaikan Field in the Kurdistan
Region of Iraq, is today providing an update on the Shaikan crude
export route.
The Kurdistan Regional Government's Ministry of Natural
Resources ("MNR") is to begin exporting all Shaikan crude
production via trucks to Turkey, from the end of February.
Subsequently, no Shaikan crude will be injected into the
Kirkuk-Ceyhan export pipeline at Fishkhabour, until further notice
by the MNR. The Company has been informed that the new arrangement
is required by the MNR for its overall crude oil export quality
management and is expected to be temporary. It is not expected to
affect Shaikan production levels.
Under the new arrangement, the MNR has confirmed to Gulf
Keystone that the economic benefit to the Company will be the same
as that of the previous framework, whereby all Shaikan crude was
exported via pipeline to Ceyhan. The MNR has also confirmed its
intention to take full responsibility, at its sole cost on a
non-rechargeable basis, for the additional transportation costs
related to this new export route arrangement, and that the Company
will continue to receive a fixed payment of gross $15 million per
month for sales of the crude. This agreement will remain subject to
future audit and reconciliation.
Gulf Keystone continues its ongoing discussions with the MNR
regarding commercial and contractual conditions, in particular
those around a regular and timely payment cycle, and long-term
crude marketing arrangements. Subject to further clarity on these
points, the Company looks forward to making further investments to
maintain at least plateau production at nameplate capacity of
40,000 bopd, with a view to increasing to 55,000 bopd as soon as
possible.
Jón Ferrier, Chief Executive Officer, said:
"This new export route arrangement confirms there is a market
for Shaikan crude as a standalone product while also ensuring Gulf
Keystone, and our partner MOL, remain financially and commercially
neutral under this arrangement. We continue an active dialogue with
the MNR to achieve satisfactory commercial and contractual clarity
around payments and marketing which remain key to achieving
production growth and realising full value potential."
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Kate Leslie, Corporate Communications
Manager
Celicourt Communications: +44(0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Notes to Editors:
-- Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading
independent operator and producer in the Kurdistan Region of Iraq
and the operator of the Shaikan field with current production
capacity of 40,000 barrels of oil per day
-- Further information on Gulf Keystone is available on its website www.gulfkeystone.com
Disclaimer
This announcement contains certain forward-looking statements
that are subject to the risks and uncertainties associated with the
oil & gas exploration and production business. These statements
are made by the Company and its Directors in good faith based on
the information available to them up to the time of their approval
of this announcement but such statements should be treated with
caution due to inherent risks and uncertainties, including both
economic and business factors and/or factors beyond the Company's
control or within the Company's control where, for example, the
Company decides on a change of plan or strategy. This announcement
has been prepared solely to provide additional information to
shareholders to assess the Group's strategies and the potential for
those strategies to succeed. This announcement should not be relied
on by any other party or for any other purpose.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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