Gulf Keystone Petroleum (GKP) provided an update on operational and corporate activity and the Company's upcoming 2023 Annual General Meeting ("AGM") on Monaday:
Operational & Corporate Update
Following the shut-in of the Iraq-Turkey pipeline on 25 March 2023, production from the Shaikan Field remains shut-in. The suspension of exports has resulted in a gross production deferment to date of around 2.9 million barrels, or approximately 8,000 bopd on a full-year basis.
While no official timeline to restart pipeline operations has been publicly announced, the Company continues to believe that the suspension of exports will be temporary. We are encouraged by the announcement from the Kurdistan Regional Government ("KRG") on 11 May 2023 that it has reached an agreement with the Iraqi government on measures to allow the resumption of oil exports through Turkey and that Iraq's State Oil Marketing Organization ("SOMO") has officially requested Turkish authorities to allow the Kurdistan Region's oil exports via the country's Ceyhan port. The Company remains ready to resume production immediately.
The Company continues to seek clarity from the KRG on when consistent monthly oil sales payments will resume and when the current overdue receivables for the months of October 2022 to February 2023, totalling $128 million net on the basis of the KBT pricing mechanism, will be paid.
The Company remains focussed on preserving liquidity and continues to reduce capital expenditures and costs across the business, while maintaining a strong focus on safety and long-term asset reliability.
As previously announced, the Board has been considering the proposed final 2022 ordinary annual dividend of $25 million and, while the importance of distributions to shareholders is recognised, it believes that it is prudent to cancel the dividend. Once regular payments from the KRG resume, the Board will consider the reinstatement of dividends in line with its financial framework, which includes an assessment of the Company's expected liquidity, cash flow generation and investment needs.
GKP will provide further updates to the market, as appropriate.
Notice of Annual General Meeting
Gulf Keystone's 2023 AGM will be held on Friday 16 June 2023 via webcast at 10 A.M. (CET).
Following the publication of the Company's Annual Report and Accounts for the year ended 31 December 2022 ("the Annual Report") on 28 April 2023, the Notice of Annual General Meeting ("AGM") and accompanying forms of proxy and instruction have today been posted to shareholders.
All documents are available to view on the dedicated AGM page of Gulf Keystone's website (www.gulfkeystone.com/investors/agm) and have also been submitted to the National Storage Mechanism.
The AGM will be held via webcast which all Gulf Keystone shareholders are invited to view. Voting of the resolutions at the AGM will be conducted by a poll and we strongly encourage shareholders to vote on all resolutions in advance of the meeting. Shareholders are kindly requested to appoint the Chairman as their proxy when voting.
Full details of the operation and arrangements for the AGM, as well as instructions for joining the webcast and voting, are available on Gulf Keystone's website (www.gulfkeystone.com/investors/agm) and in the Notice of AGM. Any shareholders who wish to ask a question for consideration at the AGM are encouraged to send it in advance to email@example.com.
As announced on 30 January 2023, Jaap Huijskes will retire as Chair of the Board at the 2023 AGM. Martin Angle (pictured), the current Deputy Chair and Senior Independent Director ("SID"), will be appointed Chair of the Board following the conclusion of the AGM. Ms Kimberley Wood, current independent Non-Executive Director, will be appointed Deputy Chair and SID at this time.
Garrett Soden, currently Non-Executive Director and shareholder representative of Lansdowne Partners Austria GmbH, has advised the Board that he will not be standing for re-election at the 2023 AGM following his appointment as President and Chief Executive Officer of ShaMaran Petroleum Corp. on 15 May 2023. The Company and Lansdowne Partners Austria GmbH will discuss a suitable shareholder representative replacement.