Gulf Keystone Petroleum (GKP), operator of the Shaikan Field in the Kurdistan Region of Iraq, is today providing an operational and corporate update.
This is in advance of the Company's full year results for the period ended 31 December 2017 which are expected to be announced on Wednesday 11 April 2018. The information contained herein has not been audited and may be subject to further review and amendment.
- GKP has continued its strong safety performance in 2017 and into 2018 with no lost-time incidents at the Shaikan field. Operations in the area remain secure.
- Plant uptime of 99% in 2017 helped contribute to an average gross production of 35,298 barrels of oil per day ("bopd"), in the middle of our guidance range of 32,000-38,000 bopd for the year.
- Since 15 November 2017, the Kurdistan Regional Government's ("KRG") Ministry of Natural Resources ("MNR") has resumed exporting the Shaikan crude via the export pipeline to Turkey. The Company sees the latest export development as confirmation of the suitability of the Shaikan crude within the Kurdish blend.
- The Company was encouraged by the signature of the crude oil sales agreement announced on 16 January 2018. The Company is also in dialogue with the MNR on the terms of a potential 2nd PSC Amendment.
- Subject to resolution of the commercial matters and the KRG continuing regular payment of monthly invoices, the Company currently intends on investing this year in wells and facilities to expand production capacity to 55,000 bopd.
- Part of these investments would include the hook-up of a short (400m) spur pipeline from Production Facility 2 to the Atrush export line, which links to the main export oil line to Turkey. This will reduce trucking requirements, HSE risk and improve netbacks.
- Final investment plans for 2018 are under review and will be provided to the market in due course.