Genel Energy has announced that the Taq Taq field partners have received a gross payment of $10.39 million from the Kurdistan Regional Government for oil sales during July 2017.
Genel’s net share of the payment is $5.71 million.
Gross oil sales from the Taq Taq field in July 2017 averaged 14,873 bopd, including both exports and Bazian refinery deliveries.
DNO ASA, as operator of the Tawke field, has also announced that the Tawke field partners have received a payment of $39.50 million from the Kurdistan Regional Government as payment towards July 2017 crude oil deliveries to the export market from the Tawke licence. The funds will be shared pro-rata by DNO and Genel.
(Source: Genel Energy)
Iraqi Prime Minister Haider al-Abadi has hinted that his government wants to take control of revenue generated from Kurdish oil exports.
The measure is the latest of a set of actions taken by Baghdad against the Kurdistan Region for carrying out last week’s referendum that saw a 92-percent vote for independence, the first of which saw a ban in international flights to and from the Kurdish region.
Abadi said in a tweet that his government wanted to pay monthly salaries of KRG employees with money from Kurdish oil sales. “Federal government control of oil revenues is in order to pay KR (Kurdistan Region) employee salaries in full and so that money will not go to the corrupt,” Abadi tweeted.
The Kurdistan Region has described the Iraqi-imposed flight ban, and other measures as “collective punishment,” that, among others, affect the wounded Kurdish Peshmerga who need medical treatment abroad, and Yezidi survivors of IS atrocities.
Amanj Rahim, the secretary of the Kurdistan Regional Government (KRG), told the Kurdish parliament on September 30 that the oil export through Turkey’s Ceyhan pipeline was going ahead as normal.
Separately, Prime Minister Haider al-Abadi reassured Kurdish citizens they will remain secure even as the government escalates its measure against their region’s government over the recent referendum on independence.
“You are citizens of the first degree, we will not allow any harm to you and we will share our loaf of bread together,” Iraqi Prime Minister Haider al-Abadi said, addressing Kurds via twitter on September 30. “To our people in the Kurdistan region: We defend our Kurdish citizens as we defend all Iraqis and will not allow any attack on them,” Abadi added.
By John Lee.
Iraq’s Ministry of Oil has announced preliminary oil exports for September of 97,204,267 barrels, giving an average for the month of 3.240 million barrels per day (bpd), slightly more than the 3.216 bpd exported in August.
The exports were entirely from the southern terminals, with no exports from Kirkuk via Ceyhan.
Revenues for the month were $4.882 billion at an average price of $50.225 per barrel.
August export figures can be found here.
(Source: Ministry of Oil)
Shares in Gulf Keystone Petroleum (GKP) were trading down 3 percent this morning following the announcement of its results for the half year ended 30 June 2017.
Reuters quotes analysts at Cenkos Securities as saying that further clarity on payment is required before GKP can commit to proper capital expenditure.
Highlights to 30 June 2017 and post reporting period
- Gulf Keystone’s operations in the Kurdistan Region remained safe and secure throughout H1 2017 with plant uptime at PF-1 and PF-2 of over 99% with no lost-time incidents.
- Shaikan achieved average daily production of 36,664 bopd.
- Cumulative production from Shaikan has now exceeded 40 million barrels.
- In March 2017, Shaikan-8 (“SH-8”) was brought back on-stream.
- In April 2017, ERC Equipoise verified remaining gross Shaikan 2P reserves of 615 MMstb, as at 31 December 2016.
- With gross production of c.35,350 bopd in Q3 2017 so far, gross production guidance for 2017 remains at 32,000-38,000 bopd.
- Operational strategy for investment into Shaikan has been matured throughout 2017.
- Cash flow positive through H1 2017.
- The Group has continued to receive regular payments from the Ministry of Natural Resources (“the MNR”) of $15 million gross ($12 million net to GKP) with cash receipts of $84 million net to GKP year to date.
- Continued cost control with gross operating costs per barrel of $3/bbl (H1 2016:$4/bbl).
- Profit after tax of $0.7 million (H1 2016 (as restated): loss after tax of $232.6 million).
- As at 30 June 2017, the Group estimates an unrecognised revenue receivable of $33 million net to GKP with regards to unpaid export sales (December 2016: $25 million) and $76 million net to GKP for the past costs associated with the Shaikan Government Participation Option (December 2016: $71 million).
- Cash balance at 30 June 2017 of $118.8 million against $100 million debt principal.
- Cash balance at 18 September of $133.8 million.
- April 2017, decision taken to pay Reinstated Notes coupon of $5.1 million at 10% interest rate. The decision regarding the October 2017 coupon will be communicated to the market in due course.
- The Company is progressing in its ongoing discussions with the MNR regarding commercial and contractual conditions, in particular those around regular payments conforming to the Shaikan Production Sharing Contract (“PSC”) and crude marketing arrangements.
- GKP is preparing to make further investments to maintain plateau production at the nameplate capacity of 40,000 bopd with a view to increasing to 55,000 bopd, and beyond, subject to MOL and MNR approvals, a regular payment cycle from the MNR and a commercially acceptable investment environment.
Jón Ferrier (pictured), Gulf Keystone’s Chief Executive Officer, said:
“The first half of the year was a period of solid operational delivery, which has seen the Shaikan field continue to perform in line with expectations.
“The Company continues its dialogue with the MNR with the objective of achieving contractual and commercial clarity. Whilst continuing to maintain a rigorous and disciplined approach to its cost base, Gulf Keystone remains cash flow positive and well placed to continue to invest in increasing production from Shaikan.”
Full results here.
(Sources: Gulf Keystone Petroleum, Reuters, Yahoo!)