REG-Gulf Keystone Petroleum Ltd Update on Shaikan Field exports

Gulf Keystone PetroleumAnnouncement

27/03/2023 07:15

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   Gulf Keystone Petroleum Ltd (GKP)
   Update on Shaikan Field exports

   27-March-2023 / 07:00 GMT/BST

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   27 March 2023

                                        

                                        

                    Gulf Keystone Petroleum Ltd. (LSE: GKP)

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

                                        

                        Update on Shaikan Field exports

                                        

   Gulf  Keystone,   a  leading   independent   operator  and   producer   in
   the Kurdistan Region of Iraq, has  noted  reports that  the  long  running
   arbitration case between Iraq and Turkey concerning the Iraq-Turkey export
   pipeline has been awarded in Iraq’s favour. The arbitration dates back  to
   2014, when Iraq claimed at the International Chamber of Commerce in  Paris
   that Turkey  was violating  the terms  of a  1973 bilateral  agreement  by
   allowing the Kurdistan Regional Government (“KRG”) to export crude through
   the pipeline without Baghdad’s consent.

    

   Subsequent to  the  Court’s  reported  decision,  the  Kurdistan  Pipeline
   Company notified GKP on  25 March that the  Iraq-Turkey pipeline has  been
   shut-in at  Turkey’s request  until  the situation  is resolved.  The  KRG
   exports crude from the  Shaikan Field and other  fields in the region  via
   this route. GKP’s  facilities have storage  capacity that allow  continued
   production at  a curtailed  rate  over the  coming  days after  which  the
   Company will suspend production.

    

   Although it is not  yet clear when export  operations will resume,  public
   statements made  by the  KRG, Kurdistan’s  Ministry of  Natural  Resources
   (“MNR”) and the Iraqi Ministry of Oil (“MOO”) lead us to believe that  the
   suspension of exports will be temporary:

    

     • The KRG’s Prime Minister, Masrour  Barzani, has stated that the  KRG’s
       “recent understandings with Baghdad have laid the groundwork for us to
       overcome the arbitration ruling”. He also noted that a delegation from
       the KRG was  in Baghdad  yesterday “to build  on the  goodwill of  our
       discussions”
     • The MNR has also stated that  the arbitration ruling “will not  hinder
       our relations with the Baghdad government”
     • The MOO has stated that “it  will discuss the mechanisms of  exporting
       Iraqi oil  through  the Turkish  Port  of Ceyhan  with  the  concerned
       authorities  in   the   Kurdistan    region  and   with  the   Turkish
       authorities” and that “it is in the interest of the Ministry to export
       the full  quantities  allocated from  all  oil fields,  including  the
        Kurdistan  region, with the aim of maximising financial revenues,  to
       supplement the federal budget”

    

   Gulf Keystone welcomes these statements  and believes they are  reflective
   of improving relations and communication between Iraq and Kurdistan  since
   the formation of  a new government  in Iraq in  October 2022. Since  then,
   both governments  have been  regularly  engaging on  a number  of  issues,
   including the development of a new oil and gas law.

    

   The Company also  notes the  approval by  the Iraqi  Cabinet earlier  this
   month of a draft  three-year federal budget to  be submitted to the  Iraqi
   Parliament for  final  approval,  which includes  a  mechanism  to  ensure
   ongoing exports  of 400,000  bopd of  Kurdistan production  in return  for
   federal budget transfers. The budget was agreed on the same day that  Iraq
   completed a budget transfer of 400 billion dinar (c.US$275 million) to the
   KRG.

    

   GKP is closely monitoring the situation and engaging with both the KRG and
   the MNR.  The Company  will  provide further  updates  to the  market,  as
   appropriate.

    

    

    

   Enquiries:

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

    

   Disclaimer

    

   This announcement  contains certain  forward-looking statements  that  are
   subject to  the risks  and uncertainties  associated with  the oil  &  gas
   exploration and production  business.  These  statements are  made by  the
   Company and its Directors in good faith based on the information available
   to them up to  the time of  their approval of  this announcement but  such
   statements should  be  treated with  caution  due to  inherent  risks  and
   uncertainties, including both economic and business factors and/or factors
   beyond the Company's control  or within the  Company's control where,  for
   example, the  Company decides  on  a change  of  plan or  strategy.   This
   announcement has been prepared solely to provide additional information to
   shareholders to assess the Group's strategies and the potential for  those
   strategies to succeed.  This announcement should  not be relied on by  any
   other party or for any other purpose.

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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.:  232563
   EQS News ID:   1592403


    
   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=1592403&site_id=reuters8&application_name=news
   4. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=6965f2bb1ddcf50ad2dd09b21a93cfc7&application_id=1592403&site_id=reuters8&application_name=news


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