Gulf Keystone halts Kurdistan oil exports

06/02/2015

Gulf Keystone has halted the export of oil by truck from the Kurdistan region of Iraq as it awaits its outstanding payment due from the Kurdistan Regional Government.

The company has continued local Kurdistan sales to maintain cash flow.

"Further to the oil export agreement between the Kurdistan Regional Government and Federal Government of Iraq reached in December 2014, and the recent passing of Iraq's 2015 federal budget, 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 John Gerstenlauer, Gulf Keystone's CEO.

Gulf Keystone remains in a dialogue with the Kurdistan Regional Government's ministry of natural resources, in order to receive the outstanding payments due to the company.

This is expected to be a short term measure until a regular payment cycle can be established for sales via the export route. The company is actively working towards an early pipeline access solution for Shaikan crude, which will provide significantly improved margins than trucking to the export market.

Last Update:: 06/02/2015

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