Keystone Says KRG Investment Awaits Payment

Gulf Keystone has official plans to raise output from its Shaikan field in Iraqi Kurdistan to 100,000 b/d by 2018. But a severe payments backlog, and the lack of a clear schedule to rectify this, have left the firm short of cash and unwilling and/or unable to advance expansion plans.

The only significant assets of London-listed independent Gulf Keystone (GKP) are in Iraqi Kurdistan, with sole production coming from the Shaikan field, which it operates. Here the firm has lowered its 2015 output target to 36,000 b/d from the 40,000 b/d it hit in late 2014.

‘MODUS OPERANDI’ NEEDED

“Our firm commitment is to move from 40,000 b/d to 70,000 b/d and ultimately to 100,000 b/d. [But] The only way to achieve this will be to find a modus operandi that will enable the Company to be paid for past and future oil sales on a regular basis, which will allow us both to invest in future facilities and production, and address our capital structure,” GKP said in its 2014 results statement, released 9 April. (CONTINUED - 1026 WORDS)