31st Jul 2015 11:23
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Friday said production is running without interruption at the two production facilities covering the Shaikan field in Iraq.
The oil and gas company said production stood at 43,700 barrels per day on Thursday, with 39,500 of those barrels being loaded per day onto 240 trucks by a domestic offtaker. Under a direct contract with the offtaker, Shaikan crude oil is delivered by truck from the company's production facilities to the Turkish coast.
Back in April, Gulf Keystone said it was aiming to maintain an average of 36,000 barrels of oil per day in 2015, but said it aimed to reach a stable 40,000 barrels per day by the end of the year.
In addition, the company has started shipping Shaikan crude 120 kilometres to Fyshkhabour on the Turkish border, where it is then meant to be into the export pipeline to be transported to Ceyhan in Turkey, after a request was made to the company by the Kurdistan Regional Government's Ministry of Natural Resources.
However, although that crude is being trucked to Fyshkhabour, it is not currently being injected into the pipeline as it has been shut down temporarily.
"The company continues to receive regular monthly payments direct from the domestic offtaker, while progressing the dialogue with the Ministry of Natural Resources regarding the payment mechanism for export sales via the pipeline and payments for past crude oil sales and other arrears," the company said.
Gulf Keystone shares were up 6.8% to 27.49 pence per share on Friday.
By Joshua Warner; [email protected]; @JoshAlliance
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