Gulf Keystone Petroleum Ltd. Shaikan Crude Oil Sales Agreement Signed (0226C)
January 16 2018 - 7:00AM
UK Regulatory
TIDMGKP
RNS Number : 0226C
Gulf Keystone Petroleum Ltd.
16 January 2018
16 January 2018
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Shaikan Crude Oil Sales Agreement Signed
Gulf Keystone is pleased to announce that a crude oil sales
agreement has been signed between Gulf Keystone Petroleum
International Ltd ("GKPI"), on behalf of the Shaikan contractors,
and the Kurdistan Regional Government ("KRG"). Under the agreement,
the KRG will purchase Shaikan crude oil at the monthly average
Dated Brent oil price minus a total of c.$22 per barrel for quality
discount, as well as domestic and international transportation
costs. This discount is based on the same variables contained
within other oil sales agreements in the Kurdistan Region of
Iraq.
The majority of the Shaikan crude oil is currently being
transported by truck from the Shaikan field to Fishkhabour, where
it has been injected into the export pipeline to Turkey gradually
since 15 November 2017, while the remainder is sold
domestically.
The agreement is effective from 1 October 2017 until 31 December
2018. GKPI will now invoice the KRG for oil sales for the months
from October 2017 onwards on the basis of the realised netback
price and net entitlement volumes in accordance with the Shaikan
Production Sharing Contract, as amended by the 1(st) PSC Amendment
in 2010 ("Shaikan PSC"). The Company continues its discussions with
the KRG's Ministry of Natural Resources ("MNR") on the terms of a
potential 2(nd) PSC Amendment. The Company will inform the market
of any material developments in this regard.
The information communicated in this announcement is inside
information for the purposes of Article 7 of Regulation
596/2014.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Celicourt Communications: +44 (0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
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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