31st Mar 2023 12:07
(Correcting the name in the company description.)
(Alliance News) - Gulf Keystone Petroleum Ltd on Friday said it plans to shut-in production at two production facilities, amid an ongoing dispute between Iraq and Turkey.
Gulf Keystone is an Iraq-focused oil field operator.
On Monday, Gulf Keystone noted that Turkey closed the Iraq-Turkey pipeline after the International Chamber of Commerce ruled in favour of Baghdad in an arbitration case against Iraq's autonomous Kurdistan region.
Baghdad said the arbitration tribunal of the Paris-based ICC had accepted Baghdad's claims in a dispute with Ankara over who had responsibility for exporting the oil from Iraq's autonomous Kurdistan region, where Gulf Keystone operates.
Iraq in 2014 launched the proceedings against neighbouring Turkey, claiming exclusive rights over Kurdistan's oil exports.
But in defiance of Baghdad, the regional government in Arbil continued to export oil through Turkey at a rate of around 450,000 barrels a day.
The Kurdistan government sees Baghdad as trying to profit from the region's resources, while the Iraqi government argues it should enjoy sovereign control over all of the country's oil production.
On Friday, Gulf Keystone said it expects to shut-in production processed at Production Facility 1. Meanwhile, production flowing into Production Facility 2 will continue into storage tanks at reduced rates for around another two weeks before also being shut-in.
The combined storage capacity at PF-1 and PF-2 is approximately 150,000 barrels, the company noted.
Gulf Keystone said it understands that discussions between the Kurdistan Regional Government and the Iraqi Ministry of Oil are ongoing. It added that it "continues to believe that the suspension of exports will be temporary."
"GKP is closely monitoring the situation and will provide further updates to the market, as appropriate," the company added.
Shares in Gulf Keystone we down 1.9% to 142.60 pence each in London on Friday around midday.
By Sophie Rose, Alliance News reporter
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