Gulf Keystone Petroleum has signed agreements with Kurdish and Iraqi governments to restart international crude exports from Kurdistan via the Iraq-Türkiye Pipeline.
Pipeline exports from the Shaikan Field are expected to begin within days.
The restart follows compliance with Iraq’s 2023-2025 Budget Law while preserving Kurdistan’s Production Sharing Contracts. During an interim three-month period, oil companies will receive compensation covering production and transportation costs. Gulf Keystone expects improved realised prices above $30 per barrel, up from $27-28 in local sales.
Iraq’s SOMO will transport crude from Fishkhabour to Ceyhan, with sales at Kirkuk blend prices.
“The restart of Kurdistan crude exports via the Iraq-Türkiye Pipeline is a historic milestone for Gulf Keystone, Kurdistan and Iraq that is expected to unlock significant value for all stakeholders,” said Jon Harris, Gulf Keystone’s Chief Executive Officer.
“A return to international sales prices will be transformative for the Company’s cash flow while we believe the signed agreements with the KRG and FGI, along with the Production Sharing Contracts, will facilitate long term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan Field accounts for a significant portion. We are delighted to have reached this successful resolution and are looking forward to the future as we remain focused on driving value for Gulf Keystone shareholders.”
The company continues negotiations with Kurdistan’s government over outstanding receivables from October 2022 to March 2023.