(Alliance News) - Gulf Keystone Petroleum Ltd on Wednesday said revenue receipts plummeted in its latest "challenging year", although it is "actively working" to boost volumes.
The operator of the Shaikan field, which is one of the largest developments in Iraq's Kurdistan region, said revenue receipts dropped in 2023 to USD109.2 million, from USD450.4 million the previous year.
Gulf Keystone said the Kurdistan Regional Government currently owes net USD151 million, for export sales between October 2022 and March 2023.
Gross production in 2023 averaged 21,891 barrels of oil per day, down 50% from 44,202 and "reflecting the suspension of exports and subsequent initiation of local sales". Before the closure of the Iraq-Turkey Pipeline, Gulf Keystone said gross production averaged 49,165 barrels per day from January 1 to March 24 last year.
So far in 2024, from January 1 until Monday, Gulf Keystone said gross sales averaged approximately 21,600 barrels per day.
Looking ahead, Gulf Keystone "remains focused on maximising local sales to at least cover monthly costs while proactively managing accounts payable". It said that local demand remains variable and hard to predict, but that it is "actively pursuing opportunities to increase sales volumes".
Additionally, the company "continues to actively engage with government stakeholders to push for the restart of pipeline exports".
Once exports resume and KRG payments are normalised, Gulf Keystone expects to realise Shaikan's "substantial" reserves and get back to its former production levels.
Shares in Gulf Keystone Petroleum were trading 2.1% lower at 109.18 pence on Wednesday in London.
By Emma Curzon, Alliance News reporter
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Gulf Keystone Petroleum (GKP)