Gulf Keystone Petroleum, announced it has only received partial payment from the Kurdistan Regional Government (KRG), for exported oil. The $8US million Gulf Keystone received was exported from the Shikan Oil Field in northern Iraqi Kurdistan. "This is a partial payment of the invoiced amount and the balance is expected to be paid shortly," the company announced.
This payment is indicative of a trend that has long persisted, since in April, Gulf Keystone received $6US million and then a further $9US million in early June to completely settle the April invoice.
Shaken produced 40,840 bpd and has not yet announced the balance owed by KRG or the amount of oil that was exported in May 2016. Yet, Gulf Keystone recently announced they plan to move into the large-scale phase of development for the Shaikan field expecting a 110,000 barrels of oil per day production rate despite not receiving full payments from KRG.
With the mounting arrears from KRG not getting paid, Gulf Keystone was earlier this year forced to extend an agreement with Lenders for the second time as the company did not have the necessary capital to keep output steady and consistent to meet its target rate of producing oil . Gulf Keystone has since reached an agreement with committee holders that mean they have entered a “standstill agreement” on interest for April payments; however, the payments have now been extended to July 1st.