18th Mar 2015 12:33
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Wednesday said it has resumed production and truck loading operations at both its production facilities in the Shaikan field in the Kurdistan region of Iraq after receiving prepayments from the Kurdistan government for future crude oil sales.
At the beginning of February, Gulf Keystone said it had temporarily suspended exporting its crude oil from the Shaikan project until it could agree a more "stable payment cycle" with the Kurdistan regional government, as it continued to try to recover money owed to the company.
But on February 26, the company said it received a USD20.8 million payment from the government as a prepayment for future crude oil sales.
As a result, Gulf Keystone on Wednesday said it will now ramp up production to levels consistent with the installed capacity of 40,000 barrels of oil per day, and said it expects to get further payments on a similar cycle from the government, which is expected to "stabilise a payment cycle", it said.
Gulf Keystone shares were trading up 7.5% to 40.86 pence per share on Wednesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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