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Gulf Keystone sees profit from Kurdistan oil for first time

Staff Writer | April 11, 2018
Gulf Keystone Petroleum said that it has achieved a annual pretax profit for the first time since it started operations in the Kurdistan area of Iraq.
Gulf Keystone
Oil exploration   The oil mining company
The oil mining company posted a $14.1 million pretax profit for 2017, compared with a pretax loss of $17.3 million in the comparative year ago period.

The company received 11 payments during 2017 from its agreement with the Kurdistan regional government totalling $132 million, up from $114 million in 2016.

The announced deal in January, was effective from October 2017 to December 2018. Under the agreement, the Kurdistan regional government will purchase Shaikan crude oil at the monthly averaged dated Brent oil price minus a total of $22 per barrel for quality discount, as well as domestic and international transportation costs.

As a result, Gulf Keystone has seen a significant improvement in monthly receipts which have averaged $21 million per month..

Gulf Keystone's revenue fell to $172.4 million for financial year 2017 from $194.4 million the year before.

The oil explorer's also improved efficiency in 2017. Production costs for the year were down to $2.8 per barrel from $3.5 per barrel in financial year 2016.

In 2017, it achieved average gross production of 35,298 barrels of oil per day, around the midpoint of its 32,000-38,000 barrels of oil per day guidance for the year.

The company holds a cash balance of $203 million and $100 million of debt.


 

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