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I find it interesting that you keep saying that the CPR monies are almost over, when in reality, as long as gkp keep spending on drills and other production facilities as the field is developed, these monies will keep coming back to gkp, what is your purpose here?
Ummm GKP share price is always falling because it has paid out dividends, so why do other companies who have been paying out dividends for years not fall in the same way as you suggest. Yes of course as soon as a dividend payment is made share prices usually fall by the amount given out but what you forget to mention is that they recover because the actual dividends are payments from profits the companies accumulate and after a dividend payment is made the companies continue to make more profit filling up the next dividend payment so I don’t think your reason is valid, well maybe for a month or two until the profits build back up and as gkp were making lots of money on a monthly basis before the closure I do not believe it was the dividends that caused the drop from three to two pounds but the political risks which if the pipe reopens will now be gone and the contracts legit so the share price will climb a long way above three pounds once the profits start accumulating again and the dividends are reinstated.
The simple fact that the KRG oil as previous stated by SOMO, will be sold at the same price as the rest of Iraq oil, negates the argument for Kurdish pricing and £3 is easily attainable never mind the fact that the political risk price reduction will be lifted, albeit slowly, £4 is certainly not outside the ball park in comparison to peers in the industry!
The simple fact that the KRG oil as previous stated by SOMO, will be sold at the same price as the rest of Iraq oil, negates the argument for Kurdish pricing and £3 is easily attainable never mind the fact that the political risk price reduction will be lifted, albeit slowly, £4 is certainly not outside the ball park in comparison to peers in the industry!
You seem to suffer from the delusion that the oil market is a buyers market when as the world knows it is a sellers market, hence the likes of opec dictating prices and quantities allowed to market. So if Iraq say krg oil via somo is the same as other Iraq oil products then that is what it will be, if the buyers don’t agree to the new contracts then they don’t get any oil. Please stop it with your negativity!
Iraq Basrah heavy is currently 82 dollars and Basrah medium is 85 dollars and seeing as somo will sell the oil then we can expect one of these prices unless some of iraqs oil is sold in the pec basket then the price is higher, so happy days to come with the opening of the pipe
Do the maths, 12% approx krg budget, 12% of 220k barrels is approx 21k barrels divided by how many oil producers in krg, if it’s a fair split then not a large amount from krg or gkp but Iraq may take all the cut
Baghdad (IraqiNews.com) – After long disagreements, it seems that the federal government and the regional government finally agreed on a joint mechanism to sell Kurdistan’s oil.
Sources revealed that representatives of the Kurdistan region and the federal government, during a meeting held on Friday in Baghdad, agreed on a new mechanism to jointly sell oil, Rudaw News reported.
Other meetings will be held to agree on oil contracts for the Kurdistan region, and jointly find new buyers for oil from the Turkish port of Ceyhan, in addition to the existing buyers, in a move that would reassure the producing companies and the buyers of the region’s crude, Rudaw News mentioned.
All companies buying the region’s oil have been informed of the need to sign new contracts, as oil will be sold from now on according to international prices, and not at a discount of 10 USD per barrel, as was the case in the past.
With this step, Kurdistan’s oil will be sold at the same price at which the State Organization for Marketing of Oil (SOMO) sells crude, with the approval of the federal government.
All companies buying the region’s oil have been informed of the need to sign new contracts, as oil will be sold from now on according to international prices, and not at a discount of 10 USD per barrel, as was the case in the past.
With this step, Kurdistan’s oil will be sold at the same price at which the State Organization for Marketing of Oil (SOMO) sells crude, with the approval of the federal government.
Iraqi Ministry of Oil announces preliminary agreement to resume oil exports from Kurdistan Region
Breaking
Iraqi Ministry Of Oil
2023-04-01 16:20
Shafaq News/ The Iraqi Ministry of Oil announced a preliminary agreement to resume oil exports from the Kurdistan Region through the Iraqi Oil Marketing Company (SOMO) on Saturday.
According to the ministry's spokesman, Assem Jihad, the agreement needs the federal government's approval.
Jihad stated that the Ministry of Oil wants to expedite the resumption of oil exports, after which differences between the federal and the Kurdish governments will be resolved regarding other issues.
"Iraqi Kurdistan has obligations and companies contracting with it to extract oil, and it has obligations with the countries exporting crude oil to it and pays monthly. Therefore, these matters must be discussed, and mechanisms should be established for agreement between the two parties later," added Jihad.
Last week, the Iraqi Ministry of Oil announced that it had won a long-term arbitration case against Turkey regarding exporting crude oil from the Kurdistan Region through the Turkish port of Ceyhan. As a result of the case, Iraq stopped the export of 450,000 barrels per day of crude oil from the Kurdistan Region and the northern fields of Kirkuk.
Baghdad filed the arbitration case in 2014, alleging that Turkey violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil through a pipeline to the Turkish port of Ceyhan. While the Federal Ministry of Oil stated that it had won the case, it also indicated that it would discuss the export mechanism through the same port with the Kurdish and Turkish authorities.
Erbil, Baghdad reach preliminary agreement on oil export row. "ERBIL, Kurdistan Region - The Iraqi government and the Kurdistan Regional Government (KRG) reached a preliminary agreement on Friday about exporting the Kurdistan Region's oil through the Iraq-Turkey pipeline, according to a well-informed source." hTTps://www.rudaw.net/english/kurdistan/01042023 Rudaw 5 minutes ago - "ERBIL, Kurdistan Region - The Iraqi government and the Kurdistan Regional Government (KRG) reached a preliminary agreement on Friday about exporting the Kurdistan Region's oil through the Iraq-Turkey pipeline, according to a well-informed source. Oil firms operating in the Kurdistan Region have stopped production or reduced output and diverted it into storage after a Paris arbitration court last week ruled that Turkey had violated an agreement with Iraq by allowing the Kurdistan Region to begin independent oil exports in 2014. Kurdistan Region President Nechirvan Barzani and Prime Minister Masrour Barzani were in contact with Iraqi Prime Minister Mohammed Shia' al-Sudani to find a solution to the problem. The details of the deal have not been made public, but the source said other meetings will be needed to clarify the KRG’s contracts with international oil companies (IOCs) as well as finding new buyers for the oil at Turkey's Mediterranean Ceyhan port. The agreement is expected to provide stability for the IOCs and buyers. Oil firms operating in the Kurdistan Region have said they expect the stoppage to be temporary and exports will resume as soon as an agreement is reached between the regional and federal governments.
Question to the knowledgeable folks here, thinking putup etc, once the cost recovery pool of money runs out sometime next year, presuming we/the company hasn’t already started to reinvest in the field due to fdp acceptance; what do you expect the monthly income to be for gkp with similar bpd production to present? And with an increase to 55k bpd?
Thank you in advance for any sensible replies
“ GKP is producing 12 times that SHAMARAN acquisition , and SELF FINANCING to 25 times that.
Plus its OPERATOR
Plus it has far far larger reserves and production life of oil+gas+condensate
You can see why so much effort has gone into keeping the SP on its @rse pre TAKEOVER.”
Hahaha of course it can be valued
The 17th has gone and what has happened? Nothing to report, strange don’t you think. Krg oil has always been illegal in the eyes of Iraq government what difference will the current illegal status make when it’s always been illegal?
Looking forward to the half year results in September, a debt free company with earnings per share for this year approximately $2, if we keep the same silly low PE of 3.6 then our share price should shoot way north from here
Umm largest UT in my memory of GKP especially since the consolidation not to mention the stupidly large amount of afters, GENL having a similar massive UT.
Kurdistan oil is finally coming out to play and about time too :)
Can anyone tell how long is left to run on the Shaikan license? It’s a long time since I looked at the contract and being overseas I don’t even have access to my old laptop with all the old info from 10 plus years ago. I seem to recall it was for twenty five years with an option for an extra five years from start of commercial production or was it twenty years with an option for a further five?
Another issues I have is why aren’t the company diversifying into other areas of the world by buying out or into other oilfields seeing how there is a termination date to this license and it seems pretty obvious to me the krg do not want gkp to go forwards with any more development hence the fdp never being passed on numerous occasions so instead of diversifying and adding potential years/longevity to the life of the company they are just giving all, well lots of the earned money back to investors (not that I’m bothered) or is it a ploy to increase share price after all the eps will be massive this year and likely for a few more years to come if the oil price predictions play out and with only a small PE as current PE that should equate to over £7+ a share
Point taken but just maybe with the exceptional dividend yield the city might start to believe and buy in for the dividend and up the price, the free float must be considerably smaller than in the past by now as folks reinvest the dividend to compound the value