Gulf Keystone Petroleum has suspended trucked exports of crude oil from its operations in Iraqi Kurdistan, because it is owed money from the region’s Ministry of Natural Resource.
In a statement, Gulf Keystone said it was speaking to the Kurdistan Regional Government’s Ministry of Natural Resources, in order to receive the outstanding payments due to the company and establish a stable payment cycle for export crude oil sales in the future.
It also confirmed that the company would be “taking a prudent approach to its capital expenditure in 2015 and is striving to ensure consistent and stable revenues in the short-term”.
“In the interim, in order to maintain revenues and cash flow, Gulf Keystone will be recommencing crude oil supply for local Kurdistan use. This provides the prospect of receiving revenues in the near term,” it added.
“Export crude oil deliveries by truck have therefore been temporarily suspended. This is expected to be a short term measure until a regular payment cycle can be established for sales via the export route.
“The company is actively working towards an early pipeline access solution for Shaikan crude, which will provide significantly improved margins than trucking to the export market.”
Gulf Keystone Chief Executive John Gerstenlauer said he was confident that a stable payment agreement would soon be established, and that the company would receive payment for all past and ongoing sales from the Shaikhan field.
