22nd Mar 2021 09:06
(Alliance News) - Gulf Keystone Petroleum Ltd on Monday announced the resumption of its investment programme to ramp-up gross production.
The oil company focused on the Kurdistan region of Iraq said it plans to get gross production up towards 55,000 barrels of oil per day.
"After a year of successfully managing the impact of Covid-19 on our people and production operations at Shaikan, we are pleased to announce that we are resuming the 55,000 barrels of oil per day expansion programme," said Chief Executive Jon Harris.
Work streams have begun and the company is targeting to restart the drilling in the third quarter of this year, Gulf Keystone said.
Remaining expansion activity includes completion of SH-13, which was suspended last year, drilling SH-I, the final well in the programme from the same pad, and installing electric submersible pumps in two existing wells.
Guidance for 2021 average gross production remains unchanged at 40,000 to 44,000 bopd.
The increase in gross production towards 55,000 bopd is expected to occur in the first quarter of 2022.
The remaining capital expenditure required to deliver the 55,000 bopd programme is estimated to be between USD40 million and USD45 million, resulting in a total 2021 capex of between USD55 million and USD65 million.
Gulf Keystone shares were down 0.1% at 177.68 pence each in London on Monday morning.
By Greg Roxburgh; [email protected]
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