REG-Gulf Keystone Petroleum Ltd Report on Payments to Governments for 2024

Gulf Keystone PetroleumAnnouncement

02/04/2025 07:04

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   Gulf Keystone Petroleum Ltd (GKP)
   Report on Payments to Governments for 2024

   02-Apr-2025 / 07:01 GMT/BST

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   2 April 2025

                                        

                                        

                    Gulf Keystone Petroleum Ltd. (LSE: GKP)

                   (“Gulf Keystone”, “GKP” or “the Company”)

                                        

                   Report on Payments to Governments for 2024

                                        

    

   Introduction

   This report sets out details of  the payments made to governments by  Gulf
   Keystone Petroleum Ltd and  its subsidiary undertakings (‘Gulf  Keystone’)
   for the  year ended  31 December  2024 as  required under  Disclosure  and
   Transparency Rule  4.3A issued  by the  UK’s Financial  Conduct  Authority
   (‘DTR 4.3A’) and in accordance with The Reports on Payments to Governments
   Regulations 2014  (as amended  in  2015) (the  ‘UK Regulations’)  and  our
   interpretation of the Industry  Guidance on the  UK Regulations issued  by
   the International Association of  Oil & Gas  Producers. DTR 4.3A  requires
   companies listed  on a  stock exchange  in  the UK  and operating  in  the
   extractive industry to  publicly disclose payments  to governments in  the
   countries  where  they  undertake  exploration,  prospection,   discovery,
   development and extraction of minerals, oil, natural gas deposits or other
   materials.

    

   Basis for preparation

   Total payments below £86,000 made to  a government are excluded from  this
   report, as permitted under the UK Regulations.

    

   All of the  payments made in  relation to the  Shaikan Production  Sharing
   Contract (‘Shaikan PSC’) in the Kurdistan Region of Iraq have been made to
   the Ministry  of  Natural  Resources (“MNR”)  of  the  Kurdistan  Regional
   Government (“KRG”).

    

   Production entitlements

   Production entitlements  are the  host  government’s share  of  production
   during the  reporting  period from  the  Shaikan Field  operated  by  Gulf
   Keystone. The figures reported have been produced on an entitlement basis,
   rather than on a liftings basis. Production entitlements are paid  in‑kind
   and the monetary  value disclosed is  derived from management’s  estimates
   based on the monthly oil sales invoices.

    

   Royalties

   Royalties represent royalties paid in-kind to governments during the  year
   for the extraction of oil. The terms of the royalties are described within
   the Shaikan  PSC. Royalties  have been  calculated on  the same  basis  as
   production entitlements.

    

   Licence fees and capacity building payments

   These include licence  fees, rental  fees, entry  fees, capacity  building
   payments,  security  fees  and   other  considerations  for  licences   or
   concessions.

    

   Summary of payments

                                                                     2024
   Production entitlements in-kind(1) (’000 bbl)                    4,987
   Production entitlements in-kind(1) ($’000)                     134,261
   Royalties in-kind(1) (’000 bbl)                                  1,192
   Royalties in-kind(1) ($’000)                                    32,098
   Licence fees and capacity building payments in-kind(2) ($’000)   8,566
   Infrastructure improvement payments(3)                             218
   Total (’000 bbl)                                                 6,177
   Total ($’000)                                                  175,080

    

    1. For  the  purposes  of  the   reporting  requirements  under  the   UK
       Regulations, Gulf Keystone  is required to  characterise the value  of
       the KRG’s production entitlements  under the PSC as  a payment to  the
       KRG. Throughout all of 2024, crude  oil produced by Gulf Keystone  was
       sold to local  buyers. The  KRG received its  share of  profit oil  in
       accordance with the PSC and sold the volumes directly to local  buyers
       with the estimated value of such sales being included as a payment  to
       the KRG.
    2. All sales  in the  period were  sold locally  with the  KRG  receiving
       capacity building  volumes  in-kind, which  they  then sold  to  local
       buyers. The  value  of licence,  rental  and security  fees  has  been
       accrued and is  not expected  to be  cash settled,  but rather  offset
       against historic revenue  due from  the KRG,  which has  not yet  been
       recognised in the financial statements.
    3. Support for local communities including drilling of water supply  well
       and providing  water  filtration  equipment,  purchase  of  generators
       following  severe  floods,  planting   olive  trees  and  upgrade   of
       road-calming  measures.  In  addition,  provided  training  to   local
       villagers including literacy programmes and sewing courses.

    

    

    

    

    

   Enquiries:

   Gulf Keystone:                          +44 (0) 20 7514 1400  
   Aaron Clark, Head of Investor Relations

   & Corporate Communications               1 aclark@gulfkeystone.com

    
   FTI Consulting                          +44 (0) 20 3727 1000
   Ben Brewerton
                                            2 GKP@fticonsulting.com
   Nick Hennis

    

   or visit:  3 www.gulfkeystone.com

    

   Notes to Editors:

    

   Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent  operator
   and producer in the Kurdistan Region of Iraq. Further information on  Gulf
   Keystone is available on its website  4 www.gulfkeystone.com

    

    

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          BMG4209G2077
   Category Code: MSCM
   TIDM:          GKP
   LEI Code:      213800QTAQOSSTNTPO15
   Sequence No.:  380847
   EQS News ID:   2110052


    
   End of Announcement EQS News Service

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References

   Visible links
   1. mailto:aclark@gulfkeystone.com
   2. mailto:GKP@fticonsulting.com
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=8d526d3701dabe9a2ff9507b71394df8&application_id=2110052&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=6965f2bb1ddcf50ad2dd09b21a93cfc7&application_id=2110052&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912&application_name=news


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