Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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Does seem like Iraq is moving much more towards fundamentalism, with new laws proclaimed which would by western standards seem an outrage and would cause uproar if introduced here.
https://www.reuters.com/world/middle-east/iraq-criminalises-same-sex-relationships-with-maximum-15-years-prison-2024-04-27/
Bit of a shame as it makes it harder to do business with them. Its been frowned on in many Arab countries for years but fallen short of imprisonment.
Or simply look at the company’s own disclosure, published on its website, included in the 2016 prospectus, specifically under section 13.2 on pg 175. People here would do well to read also the paragraphs that follow relating to FDP, work approvals and budget submissions that the contractor is obliged to do.
C+++*eye,
PSC was signed & dated 6th Nov 2007. Shaikan was declared a Commercial Discovery on 1st Aug-2012
As taken from the published PSC in front of me:
Development Period
6.10 If the CONTRACTOR considers that a Discovery of Crude Oil and any Associated Natural Gas is a Commercial Discovery, the CONTRACTOR shall have the exclusive rights to develop and produce such Commercial Discovery, pursuant to the terms of this Contract. The Development Period for a Commercial Discovery of Crude Oil and any Associated Natural Gas shall be twenty (20) years commencing on the declaration of such Commercial Discovery by CONTRACTOR, in accordance with Article 12.6(a), with an automatic right to a five (5) year extension.
6.11 (Refers to discovery of Non-Associated Natural Gas )
6.12 If Commercial Production from a Production Area is still possible at the end of its Development Period as defined in Article 6.10 or 6.11 then upon request, the CONTRACTOR shall be entitled to an extension of such Development Period under the same terms as those provided in this Contract. Such request shall be made in writing by the CONTRACTOR at least six (6) Months before the end of the said Development Period.
The terms of such extension of the Development Period shall be:
(a) Five (5) years for Crude Oil and any Associated Natural Gas, and/or
(b) Five (5) years for Non-Associated Natural Gas
Https:// youtu. be/wD1wJcvy5iY?si=0wsnGch23_14Qh1w
A look at current Iraqi economic situation and suggestion of oil flow beginning of May.
Truthsayer, to answer your question I went to the 2016 CPR. A most incoherent, if not shady, document, that too doesn't make it clear.
It repeats details on the WI but one would think the framework of the PSC itself, with its duration would be paramount within it and its introduction, but in true GKP form, it isn't.
I saw the below info on page 9, which I have to say surprised me by 8 years, as I estimated the PSC expiring, even with the inclusive of the automatic 5 year extension option included to be circa 2035...
'Notes
1) "Gross Field Technically Recoverable Volumes" are 100% of the volumes estimated to be recoverable from
the fields without any economic cut-off being applied after expiry of the PSC licence on 30 June 2043.
2) The volumes reported here are unrisked in that they have not been multiplied by a chance of development'
I thought it ran from 2010 for 20 years, with the automatic 5 year option, so 2035 minimum.
2043 would be even better. I think. lol
https://www.gulfkeystone.com/wp-content/uploads/2019/12/erce_gkp_cpr_2016-08-26.pdf
You’re not the only one that expected the announcement of an agreement during the Erdogan visit, I suppose they’re still negotiating the financial terms of an oil export agreement and how much water Turkey will allow to flow into Iraq.
Sadly as demonstrated by their use of an Iranian weapon to attack Kurdish gas production the very highly placed Iranian influenced politicians in Iraq will not allow the pipeline to open unless they gain full control of Kurdistan’s oil and therefore their only significant income, including their ability to finance a fighting force that supports U.S. interests in the region. Now we can only hope that Kurdistan still has some good cards to play and an agreement will come in time. In the meantime it seems that profits on what they call ‘local sales’ will allow GKP to build a cash reserve that might, if it becomes large enough, allow reasonable dividends to be paid. At that point the shares might be revalued upwards even if the pipeline remains shut.
Personally I’m on ‘hold,’ although if Itsaponze predictions of 90p are right for once I’ll probably change my position to ‘buy’ that said his record in terms of predictions has been useless to date.
Patience Required
Hi Eurwyn,
None planned currently until either owed payments come or guaranteed exports start, best case 6 month, worst about 2 years when new export contract agreed , buts thats with a fair wind.
Can anyone give me a heads up on when the next Dividend payment will be?
It's really odd, that after Erdoğan visit, Israel-Iran tension and some attack on gas fields nothing really happened with SP. I was expecting some sort of breakthrough during his visit there, but we are still in the limbo. I have no idea what we are waiting for now. Any ideas?
So, 17months more of lame duck excuses, lies, promises, and interminable biscuit meetings going nowhere.
The Master Plan is obviously to delay things at every turn, then to break Barzanistan way from Baghdad, see off us troublesome little IOCs - and take over the lot of us ?
Bar-z boys and their tribal mates the Erdogans will magically agree to open the taps…. and serious wealth with flow to both famillies.
Feeling a bit used and abused.
Why is there not a ask or bid price for the share this morning??
Imapussi
It's Barzani dear Boy, do keep up.
Idiot.
I'm asking about the contract to take out oil
The PSC not the pipeline.
Not that long ! 17 months will fly by and good bye iraq forever, its the only way for the future of kurdistan.
And the Brazani family making $300m a month of the IOCs.
Who really wants SOMO contacts definitely not the KRG.
Not years its months, believe pipeline contract expires in 15 months or so but have asked our company for more information on this for accuracy.
In other words how many years do baghdad have to wait before the contract expires anyway
How many years are left to the license
This article emphasizes non-oil revenues, but as non-oil/oil revenues inevitably exhibit some overlap when it comes to civil servant salaries, this was interesting:
"A technical delegation of the Ministry of Finance and Economy of the Kurdistan Regional Government (KRG) led by Mohammed Abdulqadir, Director General of Accounting of the Ministry, arrived in Baghdad this morning [i.e. Sunday]"
Source: https:// www.kurdistan24.net/ckb/story/256957-
'For crude oil sales into the ITP from 1 January 2023 to 25 March 2023, capacity building payments were deducted from the monthly crude oil sales invoice amount payable to Gulf Keystone and no direct payment was made to the KRG. For local sales from 19 July 2023 to 31 December 2023, the KRG received capacity building volumes in kind, which they then sold to local buyers.'
This we knew ages ago.
"The value of licence, rental and security fees has been accrued and is not expected to be paid, but rather offset against historic revenue due from the KRG, which have not yet been recognised in the financial statements."
It will take a very long time to whittle down $152 million in this manner. Make no mistake, we need a return to exports to recover the arrears in a timely manner.
For FY2022 the equivalent figure was $25.009M – so the 2023 figure of $7.522M is a reduction, reflecting the company's ability to pay in the good year ‘22 and the inability (unwillingness?) to do so in the bad year of '23 (and at least reflects the willingness of the KRG to put the payment to one side for the moment).
As stated, the “owing” of this $7.522M sum has yet to be reflected in the financial statements, but it will be offset against the outstanding sums due to be paid by the KRG.
So, at this moment, $152M - $7.522 (give or take), indicates Co is still owed ca $144M (end-Dec-23). Depending on when things return to normal and revenues increase as hoped, this sum could increase and continue to be carried forward or it could be whittled down to zero inside a year.
As I see it.
Https:// www.rudaw.net/english/middleeast/iraq/280420242
ERBIL, Kurdistan Region - Kurdistan Region President Nechirvan Barzani and Iraqi President Abdul Latif Rashid met in Baghdad on Sunday to discuss numerous topics including the need to strengthen ties between the Iraqi and Kurdish governments.
“Both leaders emphasized the need to promote economic development and enhance services, while also expressing support for the federal government in implementing its agenda. The dialogue between Erbil and Baghdad, aimed at resolving their issues in accordance with the Constitution, was also a key topic of discussion,” said a statement from the Kurdistan Region Presidency.
President Barzani arrived in Baghdad on Saturday for meetings with Iraqi Prime Minister Mohammed Shia’ al-Sudani and the ruling State Administration Coalition. It is his second trip to the Iraqi capital in a month and comes against the backdrop of Sudani’s trip to Washington and a deadly drone strike on key oil and gas infrastructure in the Kurdistan Region.
During the meeting with Rashid, Barzani “reiterated the Kurdistan Region’s willingness to engage in dialogue and find mutually agreeable solutions with Baghdad,” and emphasized the importance of visits from both Erbil and Baghdad to continue.
As part of his Baghdad visit, Barzani also separately met with several senior Iraqi political leaders, including Leader of the State of Law Coalition Nouri al-Maliki, Leader of Iraq’s National Wisdom Movement Ammar al-Hakim, President of Iraq’s Supreme Judicial Council Faiq Zidan, former prime minister Adil Abdul-Mahdi, and former speaker of parliament Mohammed al-Halbousi. The meetings are expected to continue.
Yes I agree! It seems quite positive. One more thing I would add to your observations: it gives the impression that KRG and IOCs (or at least GKP) are carrying on with the PSC 'business as usual' (at least as much as we can call it 'usual' given the circumstances/this part of the world).
Sends a signal to Baghdad (?): "we're carrying on with the PSCs, which remain valid"
In the context of gggg21's post of KRG MNR's strong public announcement (Https ://gov .krd/mnr-en/activities/news-and-press-releases/2024/april/statement-by-the-ministry-of-natural-resources-of-krg/), this suggests KRG and IOCs/GKP have adopted a common position vis-a-vis Baghdad.
Moreover, KRG elections recently postponed (a result of KDP standing firm with their boycott?) and Nechirvan Barzani in Baghdad this weekend meeting with Al-Sudani and the interim parliamentary speaker also seem to signal ongoing backdoor discussions regarding a final resolution (source: hxxps :// www. kurdistan24. net/en/story/34720-Kurdistan-Region-President,-Iraqi-premier-highlight-latest-political-developments-in-Iraq)
Regarding the GKP, any dear accountants/quants who can forecast how the value of licence, rental and security fees could make a dent in the $151m owed, and over what timelines?
Makes sense Mendoza,
Also signals a very important points which are very significant indeed.
That is firstly the KRG recognise a financial obligation to the IOC's. (not theft), secondly its demonstrating a willingness to repay, even though they are being financially squeezed currently.
it also helps us out by reducing ongoing costs.
A way for KRG to pay down the $151m owed to GKP??
"The value of licence, rental and security fees has been accrued and is not expected to be paid, but rather offset against historic revenue due from the KRG, which have not yet been recognised in the financial statements."
In my view, this seems like a positive to GKP's cash position.
However, I'm not an accountant - any on here?