Sign In / Up

Add contribution as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Comment as a guest

Your email will not be displayed publicly
Benefit of signing in/signing up to personalize comment

Login

Not a member Register   Forgot Password
or connect using
 

Email

 

Rudaw

Business

Posting first profits in Kurdistan, Gulf Keystone confident for future

By Rudaw 11/4/2018
File photo: Rudaw
File photo: Rudaw
ERBIL, Kurdistan Region – Gulf Keystone posted its first profit in the Kurdistan Region in 2017 and is anticipating a boost in production at Shaikan oil field. 

"We are pleased to have reported a net profit for the year of $14.1 million, compared with a net loss of $17.4 million in 2016,” CEO Jon Ferrier said, announcing their 2017 results. 

UK-based Gulf Keystone produced an average 35,298 barrels per day (bopd) at Shaikan for the year, hitting within their target range. 

Output has dropped slightly in the first quarter of 2018, down to an average of 31,588 bopd, but the company is optimistic. 

“We made considerable commercial progress during the year and into 2018, with the signing of the Shaikan Crude Oil Sales Agreement being a key milestone,” said Ferrier.

That agreement, announced in January, ties sales of Shaikan oil to Brent oil prices. The KRG will purchase Shaikan crude oil at the monthly average Brent oil price, less $22 per barrel to cover transportation costs and a discount for quality. Previously, Gulf Keystone had received $15 million per month as a gross, fixed amount. 

“We have now moved to a transparent invoicing mechanism where monthly payments are linked to both the international oil price and actual production from the Shaikan field,” said Ferrier, describing it as a “key milestone.”
 
“We are confident that once we are able to restart investment into Shaikan we will be able to lift production towards our near-term target of 55,000 bopd, a step towards the full field development,” Ferrier said.

Earlier this year, Norwegian oil and gas operator DNO announced a boost in its investments in the Kurdistan Region on the back of high profits in 2017. 

In February, US-based Chevron announced it was resuming operations after temporarily suspending them after the independence referendum. 

Related: Iraqi federal court hears Baghdad bid to halt KRG oil sales

Comments

 
Post a New Comment
Comment as a guest or Login for more enhanced interactive experience

Be Part of Your Rudaw!

Share your stories, photos and videos with Rudaw, and quite possibly the world.

What You Say

Benny | 4/23/2018 1:12:42 AM
Soon or later USA and Israel and some European countries will attack Iran and that government must be replace to a democracy government . That is the...
Non kurd | 4/24/2018 4:47:41 AM
Iran is a third world toilet run by corrupt terrorists. If they resume their nuke program, their dismal economy will turn even worse resulting in...
Iran threatens to 'vigorously' resume enrichment if US quits deal
| 22/4/2018 | (2)
Reckoning | 4/22/2018 7:10:31 PM
Why is the media always telling half true. Because all those innocent people that are kidnappende by Turkish SS corps at least most of them are...
Thomas | 4/24/2018 3:44:49 AM
None of this would happen if Kurds stopped betraying each other. The most recent one is PUK betraying on Kirkuk, Kurds lost the thousands of years...
Turkey jails Kurdish teacher with baby on terror charge
| 21/4/2018 | (10)
Y.E | 4/23/2018 11:52:52 PM
This seems quite backward and generally retarded. What does it matter if he kissed the poster? Why were the families and tribes involved? Why that...
Kissing female Iraqi candidate’s poster costs $84,000
| 23/4/2018 | (1)
Non kurd | 4/19/2018 7:33:32 PM
The barbarians ruling Iran must be overthrown asap.
Outsider | 4/23/2018 11:00:08 PM
I ask myself, what is the YPG doing with terrorists? Look at first into your own "judiciary" before you complain about others...
UN rights experts condemn death sentence of Kurd in Iran
| 19/4/2018 | (2)

Elsewhere on Rudaw

'Gap in perceptions' threatens wider Middle East war 14 hours ago |

'Gap in perceptions' threatens wider Middle East war

"Iran has never threatened to initiate conflict more
Lebanese PM, Iraqi FM implore Europe to assist in Syrian solution 18 hours ago |

Lebanese PM, Iraqi FM implore Europe to assist in Syrian solution

The Iraqi FM addressed recent allegations of a more
0.187 seconds