6th Feb 2015 07:26
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd Friday said it has temporarily suspended exporting its crude oil from the Shaikan project in Iraq until it can agree a more "stable payment cycle" with the Kurdistan regional government, as it continues to try to recover money owed to the company.
In December, the Kurdistan regional government and the federal government of Iraq signed an oil export agreement, which Gulf Keystone believes will lead to "a stable payment cycle" being established in the near term.
The company is currently in talks with the Kurdistan regional government about outstanding payments owed to Gulf Keystone.
"We remain confident that a stable payment cycle will be established in the near term, and we expect to receive payment for all past and ongoing oil sales from Shaikan," said the company.
"In order to maintain revenues and cash flow, Gulf Keystone will be recommencing crude oil supply for local Kurdistan use. This provides the prospect of receiving revenues in the near term," the company said. "Export crude oil deliveries by truck have therefore been temporarily suspended. This is expected to be a short term measure until a regular payment cycle can be established for sales via the export route."
In addition, Gulf Keystone said it was looking at longer-term financing options and said it will be prudent with its capital expenditure during 2015.
By Joshua Warner; [email protected]; @JoshAlliance
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