Keystone Bullish At Shaikan

Gulf Keystone (GKP) says it has stabilized production at the giant Shaikan oil field, one of the largest discoveries in the Kurdish region, at 23,000 b/d and is on track to raise output to a targeted 40,000 b/d by the end of the year.

Work is ongoing on flowlines to connect three additional production wells later in the year, it adds. Output from Shaikan dipped to 9,000 b/d in August as a result of the crisis.

The company says 70% of its current output is being exported by truck to the Turkish port of Dortyol to be sold on by Turkish marketer Powertrans. It says 17 cargoes totalling 4mn barrels of Shaikan crude has been sold to the international market since January 2014. Approximately 30% of Shaikan output is sold on the domestic market, which is providing steady revenues, it adds. GKP, which has not yet been paid for its international exports, is still negotiating with the KRG having warned previously that its future plans might be stalled unless it receives payment from Erbil. (CONTINUED - 315 WORDS)