Gulf Keystone Petroleum Ltd. Receives $35.8 Million from Kurdistan

Gulf Keystone Petroleum Ltd. said on Monday that it had received $35.8 million from the Kurdistan Regional Government. The company said that the payment comprised of $30.7 million for Shaikan crude oil sales during May 2021 and grossed $5.1 million concerning the arrears from the outstanding November 2019 to February 2020 invoices.

Gulf Keystone Petroleum Ltd said the current outstanding arrears balance is $54.8 million in net terms. Shares at 1540 GMT were up 7.8 pence, or 4.6%, at 176.2 pence. The company also received a $35.1 million gross payment from the Kurdistan Regional Government, of which $27.4 million is net to the company.

The Iraq-focused oil producer said the payment includes $27.0 million for Shaikan crude oil sales in April, $4.2 million for March arrears, and $3.9 million for April arrears. Following this receipt, the current outstanding balance net to GKP is $58.9 million. Shares at 1301 GMT were down 0.02 pence, or 1.3%, at 1.88 pence. The Iraqi Kurdistan-focused oil company said it had restarted drilling activities, having expected to do so in the third quarter.

Gulf Keystone Petroleum Ltd. has restarted drilling and expects to complete its SH-13 well ahead of schedule, as it forecast 2021 gross production to meet the upper end of guidance. After S-13, work will begin on SH-I, and gross production is now expected to increase towards 55,000 barrels of oil per day in the fourth quarter. The company said it expects the 2021 average gross production to be towards the upper end of the 40,000-44,000 barrels a day guidance range.