Gulf Keystone Petroleum Limited (LSE:GKP) told investors that it expects exports from the Shaikan Field to resume within a matter of days.
It follows the signing of agreements with the Kurdistan Regional Government and the Federal Government of Iraq to allow the restart of international crude exports via the Iraq-Türkiye Pipeline.
International oil companies will be compensated for production and transportation costs, for an interim three-month period, and Gulf Keystone said it expects realised prices at Shaikan to exceed $30 per barrel, compared to a local sales price of $27–28 per barrel.
Crude will be transported by Iraq’s SOMO from Fishkhabour in Kurdistan to Ceyhan in Türkiye.
Chief executive Jon Harris described the restart as a historic milestone.
"Kurdistan and Iraq that is expected to unlock significant value for all stakeholders," Harris said.
"A return to international sales prices will be transformative for the company’s cash flow, while we believe the signed agreements with the KRG and FGI, along with the Production Sharing Contracts, will facilitate long-term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan Field accounts for a significant portion."
Sales proceeds will be deposited into an escrow account at an international bank before being disbursed to operators.
Gulf Keystone said it continues to engage with the Kurdistan Regional Government over outstanding receivables, spanning from October 2022 to March 2023.