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GKP Shares Fall as Coronavirus Delays Plans

By John Lee.

Shares in Gulf Keystone Petroleum (GKP) were trading down 9.6 percent on Monday, compared to a broader market fall of 7.4 percent, as the company announced that expansion plans will be delayed due to coronavirus (COVID-19).

In a statement to the markets, the company said:

The Company has been closely monitoring the Coronavirus (COVID-19) situation in the Kurdistan Region of Iraq.  Gulf Keystone’s priority is the welfare of its staff, contractors and the communities close to its operations. We remain committed to deliver safe operations, protection of the asset and the underlying business.

In an attempt to limit the spread of Coronavirus (COVID-19), the Kurdistan Regional Government, in line with many other jurisdictions, has put in place a series of tight controls on the movement of personnel into and around the region.  With these controls, along with the increasing global restrictions on movement, it has become difficult to ensure Gulf Keystone has the appropriate drilling personnel and equipment on site in order to continue safe drilling operations.

Therefore, with the SH-13 well – the current well in the campaign – at a safe stage, the decision has been taken to suspend drilling activities until conditions improve to ensure safe operations.

Production rates from the field are at c.38,000 bopd and production currently continues unaffected by the impact of Coronavirus (COVID-19).  However, as a precaution, the Company has restricted the access to its production facilities.  As a result, certain construction activities related to the expansion to 55,000 bopd have also been suspended until circumstances improve.

The current situation is extraordinary and we believe that our actions protect the long-term value of the asset.  The planned production increase to 55,000 bopd, scheduled for Q3 2020, and average production guidance for 43,000 – 48,000 bopd remain priorities.

However, the suspension of drilling and certain expansion operations may impact Gulf Keystone’s ability to meet these targets in the timeframes currently in place.  Gulf Keystone will continue to closely monitor this fast-moving situation and will provide updates, as appropriate. As previously announced, the Company will release its Full Year results on 26 March 2020.

Notwithstanding the above, the Company remains in a strong financial position to manage through these turbulent times with a cash balance of $159 million, as at 13 March 2020.

Jón Ferrier, CEO, commented:

“As a Company we place the welfare of our people and those we work with and near as our absolute priority.  We also have to be confident of having the right people on site to continue safe operations.  Whilst we are not aware of any employees or contractors having been infected, we believe it is prudent to suspend drilling and certain production facility expansion operations during this time. 

“We are watching the situation closely and will keep all of our stakeholders informed of developments.  Meanwhile, the Shaikan Field itself is performing well.“

(Source: GKP)

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WHO visits Iraq to step up COVID-19 Response

WHO technical mission visits Iraq to step up COVID-19 detection and response activities

A high-level technical mission from the World Health Organization (WHO) concluded a visit to Iraq to support the Iraqi Ministry of Health response to COVID-19 (coronavirus) prevention and containment measures.

The mission, which comprised experts from the Regional Office for the Eastern Mediterranean Region and headquarters in Geneva, held a series of meetings with national health authorities to identify the disease detection dynamics and at-risk populations, in addition to providing guidance on strengthening response and control measures.

The mission also reviewed the Ministry’s overall readiness to deal with a potential increase in case reporting and the priority of establishing an Emergency Operation Centre to speed up action now that the disease has been announced as a global pandemic.

WHO experts visited the Central Public Health Laboratory to assess the national laboratory capacity and availability of test kits. They also visited the Communicable Disease Control Centre and designated health facilities in Baghdad to review the ongoing response by nationals and assess the technical support required in the coming period.

Iraq reported its first case of COVID 19 – an Iranian student in Iraq on 22 February 2020 – followed by 4 cases for members of one family with a travel history to Islamic Republic of Iran. Case reporting escalated to include almost all Iraqi governorates. The total number of cases reported as of 12 March stands at 83 confirmed cases, 24 recovered, and 8 deaths.

There is growing concern among the local health authorities about the possibility of domestic transmission of the disease which would challenge the already vulnerable health system in the country, stretched by years of wars and internal crises.

The health authorities have already banned major public events, suspended schools, and closed malls and gathering places until 21 March.

WHO has so far provided and will further provide the Ministry of Health at both central and regional levels with sufficient supplies of laboratory test kits and personal protective equipment to allow for a quick response to severe cases.

In addition, WHO is working around the clock to establish 3 negative-pressure rooms in Baghdad, Erbil and Basra to accommodate patients who might require more sophisticated medical treatment.

(Source: UN)

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Some Iraqis Rejecting Coronavirus Warnings

By Dana Taib Menmy for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

 Some Iraqis Rejecting Coronavirus Warnings

Iraqi Kurdistan health officials’ recommendations seem at odds with some religious leaders’ advice on dealing with the new coronavirus, Covid-19.

Some prominent clerics there are reminding Muslims that the Quran promises a martyr’s reward for the faithful who trust in Allah despite pestilence like Covid-19.

Some are sharing a Kurdish poem that reads, “You youths take the mosque’s path / do not care about what is on your way / our mosque’s congregation is far away from epidemics.“

Click here to read the full story.

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Iran, Iraq Stress Joint Measures to Combat Coronavirus

Iranian Foreign Minister Mohammad Javad Zarif and his Iraqi counterpart, Mohamed Ali al-Hakim, stressed the need for joint measures to combat the new coronavirus, known as COVID-19.

In a telephone conversation on Monday night, Zarif and Hakim exchanged views about a host of topics, including the latest developments in the region as well as ways to boost bilateral relations between Tehran and Baghdad.

The two sides also discussed the coronavirus epidemic and stressed the need for joint measures to contain the spread of the infectious disease.

According to Iran’s Health Ministry, the death toll from the COVID-19 outbreak in Iran rose to 66 on Monday, with the confirmed cases of infection surpassing 1,500.

The ministry said out of 7,280 people who have gone to medical centers across the country so far, 4,312 are suspicious cases.

Medical staffs in 20 provinces of Iran have been working tirelessly over the past days to contain the novel coronavirus that has originated from China.

Following the increase of coronavirus increase, the Iranian government ordered the shutting of schools and universities and a ban on concerts and sports events.

Several high-ranking officials, including the deputy health minister and five lawmakers, have tested positive for the coronavirus as the spread of the outbreak forced the government to call on people to stay at home.

(Source: Tasnim, under Creative Commons licence)

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4 more get Coronavirus in Iraq

By John Lee.

Iraq has reported four new cases of coronavirus (covid-19), this time in Kirkuk province.

In a statement, the Ministry of Health said the four were from the same family, and had recently returned from Iran.

They have been placed in quarantine.

According to Reuters, Iraq has indefinitely extended an entry ban on travellers from China, Iran, Thailand, South Korean, Japan, Italy and Singapore.

(Source: Ministry of Health)

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KRG takes action to Prevent Spread of Coronavirus

KRG Prime Minister Masrour Barzani and Deputy Prime Minister Qubad Talabani (pictured) today chaired a cabinet meeting with governors from the Kurdistan Region to discuss recent developments, along with the steps the Kurdistan Regional Government (KRG) is taking to prevent an outbreak of the coronavirus.

Minister of Health Saman Hussein Muhammed updated the Prime Minister and his cabinet on the latest data regarding the spread of the coronavirus around the world and across the region, and presented immediate actions and measures the KRG is undertaking to prevent the virus from entering the Kurdistan Region.

The KRG Council of Ministers issued several decisions to protect the health of the Kurdistan Region’s citizens, as follows:

• The KRG will deliver up-to-date accurate information and instructions to the public on a daily basis, with the help of media organisations.

• The KRG will declare the period of 26 February to 10 March a public holiday for all public and private schools and kindergartens in the Kurdistan Region. Public and private universities will be closed from 29 February to 10 March. All schools and universities will remain closed during the spring break (10 March – 23 March) before reopening on 24 March. The Ministries of Education and Higher Education and Scientific Research will prepare a schedule that enables students to catch up with their studies.

• The KRG will screen domestic and international tourists entering the Kurdistan Region, in addition to limiting their movements. No one will be permitted to enter the Kurdistan Region without the required medical checks.

• The KRG will ensure people have access to everyday commodities, and that shops in the Kurdistan Region will continue stocking essential goods. The KRG will prevent the price manipulation of essential goods, and take action against anyone who attempts to benefit illegally from this situation.

• The Ministry of Finance and Economy will provide financial support to governorates and local administrations, working closely with the Ministries of Interior and Health.

The KRG is encouraging everyone to help with the implementation of these preventative steps, and to follow instructions and advice provided by healthcare professionals to protect themselves from the coronavirus.

Prime Minister Barzani also briefed ministers on the KRG delegation’s recent series of important meetings with world leaders in Germany, Italy and the Vatican. He provided an update on the latest efforts in Baghdad to form a new federal government, and stressed the Kurdistan Region, as an official and constitutional entity in Iraq, is the only body which can decide on its representatives in the federal government’s cabinet.

He added that all Kurdistani political parties in Baghdad were in agreement, and praised them for presenting a united front.

(Source: KRG)

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Iraq confirms first case of Coronavirus

By John Lee.

Iraq’s Ministry of Health has confirmed the first case of the coronavirus (covid-19) in the country.

It said that an Iranian student had tested positive for the virus in Najaf.

The student is reported to have been immediately quarantined.

Following the announcement, Kuwaiti state news agency KUNA said that Kuwait’s civil aviation authority has suspended all its flights to and from Iraq.

The Kuwaiti Ports Authority has also banned the entry of ships from Iraq.

(Sources: Ministry of Health, Anadolu Agency, KUNA)

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Video: Iraq Bans Iran Arrivals amid Coronavirus Fears

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraq is setting up quarantine areas aimed at preventing the spread of coronavirus from across the border with Iran.

Neighbouring Iran has reported its sixth death from the disease.

There are fears that hundreds of thousands of Iranian visitors to holy sites in Iraq could spread the virus.

Al Jazeera‘s Rob Matheson reports from the Iraqi capital Baghdad: