On August 29, Gulf Keystone Petroleum, a leading independent oil and gas operator and producer in the Kurdistan Region, published its results for the half year that ended on June 30, 2024.
“Gross average production increased by 69% to 39,252 barrels of oil per day (bpd) in the first half of 2024, driven by strong local market demand for crude from the Shaikan Field,” Gulf Keystone said in its 2024 Half Year Results Announcement.
Gulf Keystone Petroleum is the operator of the Shaikan Field, situated around 60 kilometers to the northwest of Erbil, covering an area of 280 square km.
The company has a production sharing contract with the Kurdistan Regional Government (KRG) and has an 80% working interest in the Shaikan license.
Moreover, the company said that local market demand rebounded in February and has remained strong.
“Production levels have been robust, with a gross average of approximately 47,900 bpd in July and around 48,200 bpd so far in August.”
“Realized prices have varied between $25 per barrel and $28 per barrel, currently standing at about $27 per barrel.”
“The Shaikan Field reservoir and operations have continued to perform well, following the smooth production ramp-up at the beginning of 2024 and the subsequent transition to continuous, 24/7 truck loading,” Gulf Keystone said.
“We have safely delivered a solid operational and financial performance in the first half of 2024, with robust local sales combined with sustained capital and cost discipline supporting our return to profitability and free cash flow generation in the period,” Gulf Keystone CEO Jon Harris said in the announcement.
“Cash flow has enabled us to strengthen our balance sheet and restart shareholder distributions, with $25 million returned to shareholders in 2024 to date.”
Harris also added that the company continues to engage with government stakeholders to push for an exports restart solution, “with significant potential value to be unlocked for Kurdistan, Iraq and the company.”
On March 25, 2023, independent crude exports from the Kurdistan Region through Turkiye were stopped after an international arbitration in Paris ruled in favor of Baghdad against Ankara, blocking 450,000 bpd of crude oil exports.
Gulf Keystone Petroleum had a gross average production of 49,165 bpd between January 1 and March 24, 2023, prior to the closure of the Iraq-Turkey Pipeline.
Kurdish officials have pressed Baghdad to resume the oil exports, but no solution has been found despite talks in the past between international oil companies, the KRG, and the federal government of Iraq. The negotiations stalled on the issue of oil production pricing.
“Gulf Keystone Petroleum remains focused on maximizing shareholder value from local sales and unlocking significant potential additional value from the restart of Kurdistan exports,” the company concluded.
