By John Lee.
Gulf Keystone Petroleum (GKP) has announced that a gross payment of $7.5 million has been received from the Kurdistan Regional Government (“KRG”) for Shaikan crude oil exports in February 2016.
This gross payment comprises the Company’s monthly contractual revenue entitlement under the Shaikan Production Sharing Contract for crude oil exports in February 2016 of $3.4 million gross ($2.7 million net to Gulf Keystone), $0.4 million gross ($0.3 million net) towards the recovery of outstanding entitlements for past deliveries and $3.7 million net towards the recovery of the past costs associated with the Shaikan Government Participation Option.
The February payment, which predates the agreement with the KRG’s Ministry of Natural Resources (“MNR”) of 16 March 2016, is reduced compared to January as a result of the temporary closure of the Kirkuk-Ceyhan export pipeline from 16 February until 11 March.
Following the payment, the Company’s current cash position is $57.2 million.