Gulf Keystone Petroleum provides operational update

Kurdistan 5 MarchGulf Keystone Petroleum, one of the leading independent operators in the Kurdistan region of Iraq, has provided an operational and corporate update

Jón Ferrier, Gulf Keystone’s CEO, said, “Throughout 2020, Gulf Keystone successfully managed the challenging operating environment delivering record annual average production of over 36,600 bopd and in December, record monthly average production of more than 43,000 bopd. Planned debottlenecking works have increased PF-1 production capacity to more than 30,000 bopd and the company expects to deliver average gross production in 2021 of 40,000 to 44,000 bopd.”

Giving the operational update, GKP stated that it has effectively managed to minimise the impact of COVID-19 on its staff and contractors and ongoing production operations. “In 2020, average gross production at Shaikan was 36,625 bopd, exceeding the top end of the guidance range and the highest annual average production rate to date from the field.”

The previously announced PF-1 plant debottlenecking work has delivered production capacity in excess of 30,000 bopd. As a result, Shaikan Field production has increased and is currently at approximately 44,000 bopd.

The total cash received from the Kurdistan Regional Government during 2020 for payments of crude oil sales was US$129mn (US$101mn net). As a result of increased production and the recent improvement in the oil price, the December 2020 crude oil sales invoice submitted to the KRG was US$18mn (US$14.1mn net), up 65% from the previous month. As of 12 January 2021, the company had a cash balance of US$147mn.

 

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