11th Jan 2016 07:43
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Monday said MOL Hungarian Oil and Gas PLC, the operator of the Akri-Bijeel block in Iraq, has relinquished the licence covering the block.
Gulf Keystone owns a 20% stake in the block situated in the Kurdistan region of the country, which is in the exploration and appraisal phase.
Gulf Keystone released a statement made by the operator: "MOL Hungarian Oil and Gas PLC hereby informs capital market participants that, in agreement with its partners Gulf Keystone Petroleum and the Kurdistan regional government's Ministry of Natural Resources, it has decided to relinquish the Akri-Bijeel block in the Kurdistan region of Iraq."
MOL Hungarian said the decision was the result of a comprehensive assessment of the block potential, and Gulf Keystone confirmed it signed the relinquishment and termination agreement of the production sharing contract that covers the block alongside MOL Hungarian.
Gulf Keystone didn't say how the decision by MOL will affect its interest in the Akri-Bijeel block.
However, the news won't affect Gulf Keystone's main operation, which remains the Shaikan field. Gulf Keystone exited 2015 with a production rate of over 36,000 barrels of oil per day from that field and is still working on formalising a permanent payment plan from the regional government for the oil it exports out of the country through the Iraq-Turkey pipeline.
Gulf Keystone, alongside fellow regional producer Genel Energy PLC, have received payments from the government for four consecutive months, but are both still owed large backpayments as the pair continue to negotiate with authorities.
By Joshua Warner; [email protected]; @JoshAlliance
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