Last checked at 
(Alliance News) - Gulf Keystone Petroleum Ltd on Tuesday said gross production at the Shaiken field in Iraq is running at approximately 42,000 barrels of oil per day, 20% above the November 2020 average rate. It expects a further increase in output in the first quarter of next year.
The oil producer in the Kurdistan region of Iraq said average gross production for the year is expected to be at or slightly above 36,000 bopd, which is the top end of its guidance range.
Chief Executive Jon Ferrier said: "The Shaikan field recently achieved an important milestone of cumulative production of 80 million stock tank barrels. This is a clear testament to not only the quality of the asset, from which there remains significant untapped potential, but also the professionalism and dedication of the team."
Looking ahead, Gulf Keystone said it "remains committed to maintaining its strong financial position and aims to return to a balance of production growth and shareholder distributions, as conditions continue to improve."
It said it has extended it hedging programme, establishing a floor price for the first half of 2021 of USD35 a barrel for 60% of production. Brent oil was trading at USD50.36 a barrel on Tuesday.
The search process for a successor for Ferrier, who announced his retirement after five years in June, continues, the company added. Ferrier said in June he will remain with the company until his replacement is appointed and a handover period has taken place.
Shares in Gulf Keystone were up 6.6% at 105.34 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
Copyright 2020 Alliance News Limited. All Rights Reserved.
