Keystone Cops It From KRG Revenue Collapse

London-listed Gulf Keystone Petroleum (GKP), the third largest foreign producer in Iraqi Kurdistan is struggling to keep its head above water. The firm's share price crashed by 21% on 17 March after its Q4 2015 conference call. Its sole upstream assets are in the KRG, with its sole source of revenue its 58% working interest, operator’s stake in the 37,000 b/d Shaikan field.

Payments for its share of output have been sporadic. Though the KRG has paid GKP most of its ongoing dues since September (give or take a month), this has only come as oil prices have tanked – meaning that the payments currently being made are lower than the ones that weren’t made when oil prices were higher. The KRG has committed to gradually pay off GKP’s $178mn receivables balance at the rate of $15mn/month, but so far only one such payment for January has been made.


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