Gulf Keystone Petroleum said it has agreed with Kurdistan Region of Iraq and Hungary’s MOL to increase oil production capacity by 55,0000 barrels per day in the next 12-18 months.
The operator of the Shaikan Field in Kurdistan said it has initiated contracting and procurement activities related to the investment play of $91 million gross, which includes workovers in existing wells drilling of a new well, facilities improvement and plant debottlenecking.
“We are very pleased with the progress we have made in recent months on key commercial and operational matters and are delighted that Gulf Keystone is now back to investment mode, with the objective of achieving 55,000 bpd production capacity in the next 12 to 18 months; an important step towards the development of the full potential of the Shaikan field," said Jón Ferrier, CEO of Gulf Keystone.
The remainder of the required capital expenditure which is currently estimated to be between $175 million to $215 million gross to achieve 55,000 bpd gross production capacity is expected to be part of the 2019 investment plan, which will also include activities related to the further development of the field), the company said.
In an operational update, the company said cumulative production from the Shaikan Field reached 50 million barrels.
Additionally, the hook-up of the 400m spur pipeline from production facility 2 to the Atrush export line is in its final stage and expected to be operational shortly. This will eliminate trucking requirements for a significant share of Shaikan production.
Meanwhile, Gulf Keystone said it has received regular payments from KRG throughout the year, with gross payments equalling $136.7 million ($107.3 million net to GKP) year to date. Its cast amounts to $222 million as at 21 June 2018.