Gulf Keystone Petroleum (GKP) has issued providing an operational and corporate update:

Jón Ferrier, Gulf Keystone’s Chief Executive Officer, said:

 In these challenging times, we remain focused on the safety of our people and have adapted our operations to ensure their continued welfare.  With the associated economic backdrop compounded by a delay in payments, we are taking a prudent approach to running our business with a sharp focus on financial discipline and maintaining liquidity.  While we were on track to deliver the expansion to 55,000 bopd in Q3 2020, flexibility is the order of the day and as such, beyond our existing commitments, we have suspended further expansion activity until conditions improve. 

 “Underpinning the Company’s strong investment case is the quality and scale of the Shaikan Field, which continues to perform well with current production of c.38,000 bopd.  

“Given our strong balance sheet with cash of $154 million at 23 March 2020, no debt repayment until mid-2023, limited capital expenditure commitments and a low-cost structure, we are highly confident in our future ability to capture the significant value in Shaikan, for the benefit of all stakeholders.”   

Operational

  • Production from the field continues in line with expectations at c.38,000 bopd, currently unaffected by the impact of COVID-19.
  • GKP was on track to achieve 55,000 bopd in Q3 2020, prior to the previously announced suspension of expansion activity.  
  • The Company remains committed to the elimination of routine gas flaring. Its gas management plan now envisages the export of sweet gas instead of gas reinjection. This follows the results of the SH-9 well, which did not encounter a gas cap. The well has been completed as an oil producer and is in the process of being tied into PF-1.
  • A revised Field Development Plan (“FDP”) is currently expected to be submitted this year, reflecting the new gas management project. Upon FDP approval, planning will commence for FEED (“Front End Engineering and Design”).

Outlook

  • GKP will maintain a conservative financial position with a clear focus on cost control and cash preservation. At current production levels, the Company covers all operating, general and administrative costs and interest payments with a Brent price of c.$35 per barrel.
  • In the absence of further expansion activity, 2020 capital expenditures, including expenditures incurred to date and remaining firm commitments, are estimated to be between $50 million and $60 million (gross).
  • The delay of further investment into Shaikan is expected to impact prior gross 2020 production guidance of 43,000-48,000 bopd and achieving 55,000 bopd in Q3 2020.
  • Given the macro uncertainty, the Board is suspending guidance until such time as the outlook becomes clearer.
  • The Board recognises the importance of distributions to shareholders and intends to consider the appropriateness and timing of the ordinary dividend and any share buyback – upon resumption of payments and when it has a clearer view of the scale and duration of the impact of COVID-19 and the macro-economic effects on the business.

(Source: GKP)

Gulf Keystone Petroleum (GKP) has issued providing an operational and corporate update:

Jón Ferrier, Gulf Keystone’s Chief Executive Officer, said:

 In these challenging times, we remain focused on the safety of our people and have adapted our operations to ensure their continued welfare.  With the associated economic backdrop compounded by a delay in payments, we are taking a prudent approach to running our business with a sharp focus on financial discipline and maintaining liquidity.  While we were on track to deliver the expansion to 55,000 bopd in Q3 2020, flexibility is the order of the day and as such, beyond our existing commitments, we have suspended further expansion activity until conditions improve. 

 “Underpinning the Company’s strong investment case is the quality and scale of the Shaikan Field, which continues to perform well with current production of c.38,000 bopd.  

“Given our strong balance sheet with cash of $154 million at 23 March 2020, no debt repayment until mid-2023, limited capital expenditure commitments and a low-cost structure, we are highly confident in our future ability to capture the significant value in Shaikan, for the benefit of all stakeholders.”   

Operational

  • Production from the field continues in line with expectations at c.38,000 bopd, currently unaffected by the impact of COVID-19.
  • GKP was on track to achieve 55,000 bopd in Q3 2020, prior to the previously announced suspension of expansion activity.  
  • The Company remains committed to the elimination of routine gas flaring. Its gas management plan now envisages the export of sweet gas instead of gas reinjection. This follows the results of the SH-9 well, which did not encounter a gas cap. The well has been completed as an oil producer and is in the process of being tied into PF-1.
  • A revised Field Development Plan (“FDP”) is currently expected to be submitted this year, reflecting the new gas management project. Upon FDP approval, planning will commence for FEED (“Front End Engineering and Design”).

Outlook

  • GKP will maintain a conservative financial position with a clear focus on cost control and cash preservation. At current production levels, the Company covers all operating, general and administrative costs and interest payments with a Brent price of c.$35 per barrel.
  • In the absence of further expansion activity, 2020 capital expenditures, including expenditures incurred to date and remaining firm commitments, are estimated to be between $50 million and $60 million (gross).
  • The delay of further investment into Shaikan is expected to impact prior gross 2020 production guidance of 43,000-48,000 bopd and achieving 55,000 bopd in Q3 2020.
  • Given the macro uncertainty, the Board is suspending guidance until such time as the outlook becomes clearer.
  • The Board recognises the importance of distributions to shareholders and intends to consider the appropriateness and timing of the ordinary dividend and any share buyback – upon resumption of payments and when it has a clearer view of the scale and duration of the impact of COVID-19 and the macro-economic effects on the business.

(Source: GKP)

COVID-19 is spreading rapidly across the world. Governments of even the wealthiest countries are struggling to cope with the scale of the Pandemic. For Iraq this is nothing short of disaster. Iraq’s health care system is in almost permanent crisis, constantly on the brink of collapse.

Only days ago, its Health Minister, Jafar Allawi, was seen on television pleading to Ayatollah Ali Al-Sistani, the spiritual leader of Iraq’s Shia Muslims, for help. His government had failed to agree to Allawi’s plea for emergency funding to cope with the Corona crisis.

Iraq is a country devastated by decades of war, internecine conflict, dictatorship, corruption and poverty, and now its beleaguered staff and broken infrastructure is being asked to deal with one of the most virulent viruses the world has ever known.

The hundreds of thousands of Yazidi IDPs living in the sprawling camps in the north are particularly at risk. AMAR field teams are doing all they can to limit the spread by dispensing much needed advice and support to those most in need.

For the last 27 years, AMAR has been at the forefront of efforts to support and enhance the Iraqi health care system. We have built, refurbished and run more than 75 health care centres, our medical professionals have carried out almost 11 million consultations, and our teams have been caring for and supporting hundreds of thousands of Yazidi IDPs since the ISIS invasion of 2014.

To continue to do this we need your support. Without our amazing donors we could not have achieved so much for more than a quarter of a century. Today, with COVID-19 the very latest threat to the lives and livelihoods of the poor Iraqi people, we need your help more than ever.

ALL THE WAYS YOU CAN DONATE DONATE BY CHEQUE DONATE BY UK CREDIT OR DEBIT CARD

Search for us on Virgin money giving under AMAR International Charitable Foundation or go to our website www.amarfoundation.org

We are delighted to add that the appeal is being backed by the Joss Stone Foundation (@JossStone) which aims to raise awareness and support for more than 200 charities globally. Thank you so much Joss!

SUPPORT AMAR ICF VIA VIRGIN MONEY HERE

or

PLEASE FIND THE DONATION FORM HERE

(Source: IBBC)

COVID-19 is spreading rapidly across the world. Governments of even the wealthiest countries are struggling to cope with the scale of the Pandemic. For Iraq this is nothing short of disaster. Iraq’s health care system is in almost permanent crisis, constantly on the brink of collapse.

Only days ago, its Health Minister, Jafar Allawi, was seen on television pleading to Ayatollah Ali Al-Sistani, the spiritual leader of Iraq’s Shia Muslims, for help. His government had failed to agree to Allawi’s plea for emergency funding to cope with the Corona crisis.

Iraq is a country devastated by decades of war, internecine conflict, dictatorship, corruption and poverty, and now its beleaguered staff and broken infrastructure is being asked to deal with one of the most virulent viruses the world has ever known.

The hundreds of thousands of Yazidi IDPs living in the sprawling camps in the north are particularly at risk. AMAR field teams are doing all they can to limit the spread by dispensing much needed advice and support to those most in need.

For the last 27 years, AMAR has been at the forefront of efforts to support and enhance the Iraqi health care system. We have built, refurbished and run more than 75 health care centres, our medical professionals have carried out almost 11 million consultations, and our teams have been caring for and supporting hundreds of thousands of Yazidi IDPs since the ISIS invasion of 2014.

To continue to do this we need your support. Without our amazing donors we could not have achieved so much for more than a quarter of a century. Today, with COVID-19 the very latest threat to the lives and livelihoods of the poor Iraqi people, we need your help more than ever.

ALL THE WAYS YOU CAN DONATE DONATE BY CHEQUE DONATE BY UK CREDIT OR DEBIT CARD

Search for us on Virgin money giving under AMAR International Charitable Foundation or go to our website www.amarfoundation.org

We are delighted to add that the appeal is being backed by the Joss Stone Foundation (@JossStone) which aims to raise awareness and support for more than 200 charities globally. Thank you so much Joss!

SUPPORT AMAR ICF VIA VIRGIN MONEY HERE

or

PLEASE FIND THE DONATION FORM HERE

(Source: IBBC)

By John Lee.

China’s Anton Oilfield Services (AntonOil) has reported that the Group has received written confirmation from its Iraqi customer in advance that it will automatically renew the 2-year contract after its expiry on July 1, 2020 for one year.

In its unaudited interim results for the one year ended 31 December 2019, it added:

“The Group is confident to rely on quality management to continue to create value for customers and strive to provide long-term and continuous management services for the oilfield. In addition, the Group will make every effort to expand towards the markets of other international oil companies in Iraq, actively seek cooperation opportunities with more international oil companies.”

It said that its large-scale integrated oilfield management project in Iraq has been running smoothly for one and a half years, and:

in 2019, the Company obtained a total of approximately RMB2,137.2 million of new orders in the Iraqi market, an increase of approximately 22.8% compared to RMB1,740.5 million in the same period last year; the Company recorded revenue of approximately RMB1419.8 million, an increase of approximately 21.3% from the RMB1,170.6 million in the same period last year.

The company is involved in the development of the Majnoon Oil Field in Basra.

(Source: Anton Oilfield Services)

By Sara Allawi and Michael O’Hanlon for USA Today. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The relationship between Iraq and the U.S. is in danger of collapse. That can’t happen.

Do the United States and Iraq, joined at the hip in tragic and mistake-prone war for most of the past 17 years, have a future together?

As Iraq seeks to form a new government, its parliament is on record recommending that U.S. forces be expelled in the aftermath of the early January killing of Iranian terror mastermind Qassam Soleimani.

Those tensions could again be inflamed by the Amerian and allied retaliation, early on March 13, for recent rocket barrages against foreign forces in Iraq by Iranian-backed militias that killed two Americans and a Brit. Over the following weekend, another round of barrages occurred, with the potential for yet more American retaliation.

The partnership appears to be in peril.

Click here to read the full story.

By John Lee.

The Central Bank of Iraq (CBI) has announced that the repayment of loans obtained under its ‘1 and 5 trillion dinars’ finance initiatives for small and medium size businesses (SMEs) will be suspended for three months.

According to a statement from the Government of Iraq, the move is an attempt to ease the financial burden caused by coronavirus (COVID-19).

(Source: Government of Iraq)

From Middle East Monitor, under a Creative Commons licence. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News.

Iraq’s Judicial Council rejects Al-Zurufi’s appointment as ‘unconstitutional’

The Supreme Judicial Council of Iraq has disputed the appointment of lawmaker Adnan Al-Zurufi as Prime Minister-designate to form a transitional government on the grounds that the president has no constitutional right to appoint him.

The Iraqi Federal Court ruled earlier that President Barham Salhi is entitled to appoint a candidate for prime minister after former Prime Minister-designate Mohammad Tawfiq Allawi withdrew his candidacy.

However, the President of the Supreme Judicial Council, Fayeq Zeidan, said in a statement that the president does not have the powers to delegate Al-Zurufi.

He explained that according to the Iraqi constitution, the president does not have the power to appoint a candidate, without the approval of his/ her parliamentary bloc.

However, legal expert Tariq Harb told Arabi21 that the Supreme Judicial Council objection is merely an “opinion” and it does not invalidate the Federal Court’s decision.

(Source: Middle East Monitor)

From Al Jazeera. Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.

Iraq has so far registered 214 coronavirus cases and 17 deaths.

To prevent further spread of the virus, the government imposed a weeklong curfew in Baghdad and other cities and cancelled all domestic flights.

But security forces are still struggling to enforce the lockdown.

Al Jazeera‘s Simona Foltyn reports from Baghdad:

By Lujain Elbaldawi for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Is Iraq taking necessary measures to prevent COVID-19 spread?

As coronavirus spreads across the globe, the number of infected people in Iraq is still manageable.

Though the country has taken strict measures to reduce infections, Iraqi officials are worried that the situation could deteriorate, and announced that other tight measures to prevent the virus’ spread will be taken soon.

Click here to read the full story.