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)

By John Lee.

Shares in Gulf Keystone Petroleum (GKP) were trading down 9.6 percent on Monday, compared to a broader market fall of 7.4 percent, as the company announced that expansion plans will be delayed due to coronavirus (COVID-19).

In a statement to the markets, the company said:

The Company has been closely monitoring the Coronavirus (COVID-19) situation in the Kurdistan Region of Iraq.  Gulf Keystone’s priority is the welfare of its staff, contractors and the communities close to its operations. We remain committed to deliver safe operations, protection of the asset and the underlying business.

In an attempt to limit the spread of Coronavirus (COVID-19), the Kurdistan Regional Government, in line with many other jurisdictions, has put in place a series of tight controls on the movement of personnel into and around the region.  With these controls, along with the increasing global restrictions on movement, it has become difficult to ensure Gulf Keystone has the appropriate drilling personnel and equipment on site in order to continue safe drilling operations.

Therefore, with the SH-13 well – the current well in the campaign – at a safe stage, the decision has been taken to suspend drilling activities until conditions improve to ensure safe operations.

Production rates from the field are at c.38,000 bopd and production currently continues unaffected by the impact of Coronavirus (COVID-19).  However, as a precaution, the Company has restricted the access to its production facilities.  As a result, certain construction activities related to the expansion to 55,000 bopd have also been suspended until circumstances improve.

The current situation is extraordinary and we believe that our actions protect the long-term value of the asset.  The planned production increase to 55,000 bopd, scheduled for Q3 2020, and average production guidance for 43,000 – 48,000 bopd remain priorities.

However, the suspension of drilling and certain expansion operations may impact Gulf Keystone’s ability to meet these targets in the timeframes currently in place.  Gulf Keystone will continue to closely monitor this fast-moving situation and will provide updates, as appropriate. As previously announced, the Company will release its Full Year results on 26 March 2020.

Notwithstanding the above, the Company remains in a strong financial position to manage through these turbulent times with a cash balance of $159 million, as at 13 March 2020.

Jón Ferrier, CEO, commented:

As a Company we place the welfare of our people and those we work with and near as our absolute priority.  We also have to be confident of having the right people on site to continue safe operations.  Whilst we are not aware of any employees or contractors having been infected, we believe it is prudent to suspend drilling and certain production facility expansion operations during this time. 

“We are watching the situation closely and will keep all of our stakeholders informed of developments.  Meanwhile, the Shaikan Field itself is performing well.

(Source: GKP)

Gulf Keystone Petroleum (GKP) has issued an operational and corporate update in advance of the Company’s full year 2019 results which are scheduled to be released on 26 March 2020.

Operational

  • Average gross production for 2019 of 32,883 barrels of oil per day (“bopd”), meeting original 2019 gross production guidance.
  • Current production rates from the field at c.40,000 bopd.
  • The side-track to the SH-9 well, designed to assess the gas reinjection potential of the Jurassic formation, reached total depth on 27 December 2019.
  • The SH-9 well is currently being tested. GKP and its partner MOL will then review plans for gas management, in consultation with the Ministry of Natural Resources.
  • In order to optimise the cost and production benefits from the drilling campaign, the sequence of wells will now be SH-L then SH-I, both of which will be drilled from the same pad and will produce into PF-2, which has available processing capacity.
  • The rig is currently being mobilised to drill the SH-L production well.
  • Full oil export from Shaikan via pipeline following commissioning of the PF-1 export line on 10 December 2019.
  • Safety remains a core focus. However, following over 530 Lost Time Incident (“LTI”) free days, an LTI occurred in December as a result of a road traffic accident.

Corporate

  • Cash balance of $192 million as at 20 January 2020.
  • The Company returned value to shareholders by paying dividends of $50 million in 2019 and to date repurchasing c.$35 million of shares out of $50 million in aggregate of share buyback programmes previously announced (with the Company today separately announcing its intention to complete the final $10 million tranche of such programmes).
  • Ian Weatherdon joined the Company on 13 January as Chief Financial Officer and Executive Board member.

Outlook

  • With the continued development of the Shaikan Field, the Company expects to increase average production in 2020 by more than 30% year-on-year to 43,000-48,000 bopd.
  • Debottlenecking and facility upgrades remain on schedule.
  • On track to reach the 55,000 bopd gross production target at Shaikan in Q3 2020.

Jon Ferrier, CEO, commented:

2019 saw GKP continue to realise the benefits of the Company’s recent turn around. In a year in which we returned significant value to shareholders, through both our maiden dividend and share buyback programmes, we also benefited from the increased operational tempo. This resulted in the first steps along the road to a significant production increase from Shaikan, and we are pleased to confirm today that we achieved our original 2019 gross production guidance.

“Looking forward, the pace of the development of Shaikan continues with the drilling and investment in our facilities, in order to deliver our growth trajectory. With a robust balance sheet and confidence in regular payments, we expect to be fully funded for our work programme and continue to return value to shareholders.

(Source: GKP)

Report on Payments to Governments for 2018

This report sets out details of the payments made to governments by Gulf Keystone Petroleum Ltd and its subsidiary undertakings (“Gulf Keystone”) for the year ended 31 December 2018 as required under Disclosure and Transparency Rule 4.3A issued by the UK’s Financial Conduct Authority (“DTR 4.3A”) and in accordance with The Reports on Payments to Governments Regulations 2014 (as amended in 2015) (“the UK Regulations”) and our interpretation of the Industry Guidance on the UK Regulations issued by the International Association of Oil & Gas Producers.

DTR 4.3A requires companies listed on a stock exchange in the UK and operating in the extractive industry to publicly disclose payments to governments in the countries where they undertake exploration, prospection, discovery, development and extraction of oil and natural gas deposits or other materials.

This report is available to download on the Company’s website: http://www.gulfkeystone.com/investor-centre/presentations-and-reports.

Basis for preparation

Total payments below £86,000 made to a government are excluded from this report, as permitted under the UK Regulations.

All of the payments made in relation to the Shaikan Production Sharing Contract (“Shaikan PSC”) in the Kurdistan Region of Iraq have been made to the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government (“KRG”).

Production entitlements

Production entitlements are the host government’s share of production during the reporting period from the Shaikan Field operated by Gulf Keystone. The figures reported have been produced on an entitlement basis, rather than on a liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management’s calculation of estimated revenue.

Royalties 

Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the royalties are described within the Shaikan PSC. Royalties have been calculated on the same basis as production entitlements.

Taxes

Taxes include taxes levied on the income, production or profits of companies, excluding taxes levied on

consumption such as value added taxes, personal income taxes or sales taxes.

Bonuses

Bonuses include signature, discovery and production bonuses.

Licence fees

These include licence fees, rental fees, entry fees, capacity building payments, security fees and other considerations for licences or concessions.

Infrastructure improvement payments 

These include payments for infrastructure improvements, whether contractual or otherwise, such as roads, other than in circumstances where the road is expected to be primarily dedicated to operational activities throughout its useful life.

Summary of payments

KRG

Production entitlements in-kind (1) (mboe (3) )

3,877

Production entitlements in-kind (1) (2) ($ ‘000)

190,077

Royalties in-kind (1) (mboe (3) )

926

Royalties in-kind (1) (2) ($ ‘000)

45,419

Taxes in-kind (4) ($ ‘000)

2,838

Bonuses ($ ‘000)

16,000

Licence fees in-kind (5) ($ ‘000)

12,566

Infrastructure improvement payments ($)

430

Total (mboe (3) )

4,803

Total ($)

267,330

 

Notes

(1)   All of the crude oil produced by Gulf Keystone was sold by the KRG. All proceeds of sale were received by or on behalf of the KRG, out of which the KRG then made payment for cost oil and profit oil in accordance with the Shaikan PSC to Gulf Keystone, in exchange for the crude oil delivered to the KRG. Under these arrangements, payments were made by or on behalf of the KRG to Gulf Keystone, rather than by Gulf Keystone to the KRG. However, for the purposes of the reporting requirements under the UK Regulations, we are required to characterise the value of the KRG’s production entitlements under the Shaikan PSC (for which the KRG receives payment directly from the market) as a payment to the KRG.

(2)   The realised prices for crude oil sales remain subject to audit and reconciliation.

(3)   Barrels of oil.

(4)   Per the Crude Oil Sales Agreement (dated 10 January 2018), road tax is payable on export sales of Shaikan crude oil transported by road from 15 November 2017 until 31 December 2018 at $7/ton. The road tax was paid in kind, as the value of the road tax was deducted in calculating the value of production entitlements payable by the KRG to Gulf Keystone.

(5)   No cash payments were made by Gulf Keystone to the KRG. Instead, the value of these fees has been accrued and will be settled with the KRG upon finalisation of the second PSC amendment.

(Source: GKP)

Report on Payments to Governments for 2018

This report sets out details of the payments made to governments by Gulf Keystone Petroleum Ltd and its subsidiary undertakings (“Gulf Keystone”) for the year ended 31 December 2018 as required under Disclosure and Transparency Rule 4.3A issued by the UK’s Financial Conduct Authority (“DTR 4.3A”) and in accordance with The Reports on Payments to Governments Regulations 2014 (as amended in 2015) (“the UK Regulations”) and our interpretation of the Industry Guidance on the UK Regulations issued by the International Association of Oil & Gas Producers.

DTR 4.3A requires companies listed on a stock exchange in the UK and operating in the extractive industry to publicly disclose payments to governments in the countries where they undertake exploration, prospection, discovery, development and extraction of oil and natural gas deposits or other materials.

This report is available to download on the Company’s website: http://www.gulfkeystone.com/investor-centre/presentations-and-reports.

Basis for preparation

Total payments below £86,000 made to a government are excluded from this report, as permitted under the UK Regulations.

All of the payments made in relation to the Shaikan Production Sharing Contract (“Shaikan PSC”) in the Kurdistan Region of Iraq have been made to the Ministry of Natural Resources (“MNR”) of the Kurdistan Regional Government (“KRG”).

Production entitlements

Production entitlements are the host government’s share of production during the reporting period from the Shaikan Field operated by Gulf Keystone. The figures reported have been produced on an entitlement basis, rather than on a liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management’s calculation of estimated revenue.

Royalties 

Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the royalties are described within the Shaikan PSC. Royalties have been calculated on the same basis as production entitlements.

Taxes

Taxes include taxes levied on the income, production or profits of companies, excluding taxes levied on

consumption such as value added taxes, personal income taxes or sales taxes.

Bonuses

Bonuses include signature, discovery and production bonuses.

Licence fees

These include licence fees, rental fees, entry fees, capacity building payments, security fees and other considerations for licences or concessions.

Infrastructure improvement payments 

These include payments for infrastructure improvements, whether contractual or otherwise, such as roads, other than in circumstances where the road is expected to be primarily dedicated to operational activities throughout its useful life.

Summary of payments

KRG

Production entitlements in-kind (1) (mboe (3) )

3,877

Production entitlements in-kind (1) (2) ($ ‘000)

190,077

Royalties in-kind (1) (mboe (3) )

926

Royalties in-kind (1) (2) ($ ‘000)

45,419

Taxes in-kind (4) ($ ‘000)

2,838

Bonuses ($ ‘000)

16,000

Licence fees in-kind (5) ($ ‘000)

12,566

Infrastructure improvement payments ($)

430

Total (mboe (3) )

4,803

Total ($)

267,330

 

Notes

(1)   All of the crude oil produced by Gulf Keystone was sold by the KRG. All proceeds of sale were received by or on behalf of the KRG, out of which the KRG then made payment for cost oil and profit oil in accordance with the Shaikan PSC to Gulf Keystone, in exchange for the crude oil delivered to the KRG. Under these arrangements, payments were made by or on behalf of the KRG to Gulf Keystone, rather than by Gulf Keystone to the KRG. However, for the purposes of the reporting requirements under the UK Regulations, we are required to characterise the value of the KRG’s production entitlements under the Shaikan PSC (for which the KRG receives payment directly from the market) as a payment to the KRG.

(2)   The realised prices for crude oil sales remain subject to audit and reconciliation.

(3)   Barrels of oil.

(4)   Per the Crude Oil Sales Agreement (dated 10 January 2018), road tax is payable on export sales of Shaikan crude oil transported by road from 15 November 2017 until 31 December 2018 at $7/ton. The road tax was paid in kind, as the value of the road tax was deducted in calculating the value of production entitlements payable by the KRG to Gulf Keystone.

(5)   No cash payments were made by Gulf Keystone to the KRG. Instead, the value of these fees has been accrued and will be settled with the KRG upon finalisation of the second PSC amendment.

(Source: GKP)

Gulf Keystone Petroleum (GKP), a leading independent operator and producer in the Kurdistan Region of Iraq (“Kurdistan” or “Kurdistan Region”), has announced its results for the half year ended 30 June 2019.

Highlights to 30 June 2019 and post reporting period

Operational

  • Average production during August was 39,269 bopd, reflecting the positive results from the workover campaign and facilities debottlenecking at PF-1; gross production this month up to 8 September averaged 39,921 bopd.
  • Gross production for the first half of 2019 averaged 29,362 bopd.  Average production rates during H1 of 2019 were necessarily affected by wells being off-line for workovers and well maintenance, in addition to the planned shutdown of PF-1 to install facilities as part of the 55,000 bopd expansion project.
  • The first well of the drilling campaign, SH-12, successfully reached total depth (“TD”) of 2,112 metres on 23 August.  Well results were encouraging with the structure coming in 53 metres higher than prognosis.  The well is currently being completed and is expected to be on production later in October.
  • Following completion of SH-12, the rig will move to the second well of the campaign, SH-9.  This well is designed to assess the gas reinjection potential of the Jurassic formation; part of the longer-term gas management plan for the Shaikan development.
  • The workover campaign to install electrical submersible pumps (“ESPs”) in existing wells has been moved into 2020 to coincide with the availability of new permanent facilities being installed as part of the 55,000 bopd expansion programme.  These facilities will allow the wells to be cleaned-up more effectively when the ESPs are installed.
  • The PF-1 pipeline and export station are nearing completion and will be in full operation following commissioning at which point all Shaikan oil will be exported via pipe.
  • A revised Field Development Plan (“FDP”), which addressed additional feedback on gas management, was submitted to the Ministry of Natural Resources (“MNR”) in May 2019.  We await formal feedback from the MNR and look forward to a constructive dialogue to finalise the FDP as soon as possible. As we have stated in the past, this delay is not slowing operations and progress on the 55,000 bopd work programme.
  • Operations at Shaikan remain safe and secure, with no Lost Time Incidents (“LTI”) in over 400 days.

Financial

  • Revenue of $95.6 million (H1 2018: $116.2 million).
  • EBITDA of $59.0 million (H1 2018: $61.6 million).
  • Profit after tax of $24.2 million (H1 2018: $26.7 million).
  • Growth in activity required to bring production to 55,000 bopd led to an increase in cash operating costs and cash operating costs per barrel in line with previous guidance to $18.4 million (H1 2018: $14.1million) and $3.9/bbl (H1 2018: $3.0/bbl) respectively.
  • Net capital investment in Shaikan of $32.4 million (H1 2018: $6.9 million). Full year capital investment guidance stands at $88-104 million net ($110-130 million gross).
  • Cash balance of $302.7 million at 30 June 2019 and $263.6 million at 9 September 2019.

Corporate

  • A $50 million dividend was approved at the June AGM. The first tranche of c.$17 million was paid in July 2019, with the second tranche of c.$33 million to be paid on 4 October 2019.
  • A $25 million share buyback programme was announced in July. The Company is pleased to confirm that the first tranche of $15 million was completed on 30 August.
  • Today, the Company is resuming its buyback programme for the remaining $10 million.
  • Following completion of the above, the Company will have returned $75 million to its shareholders in 2019.

Outlook

  • Active work programme to continue with the ongoing Jurassic drilling campaign, ESP workovers and completion of the debottlenecking plan with the Company remaining on track to deliver 55,000 bopd in Q2 2020.
  • Total capital expenditure of $200-230 million gross for the 55,000 bopd expansion programme remains in line with earlier guidance.
  • Gross production guidance for 2019 is now expected to be between 30,000-33,000 bopd, compared to previous guidance of 32,000-38,000 bopd.  This new guidance considers the delayed start to the drilling campaign, the postponement of the ESP workover campaign and the planned shutdown of PF-2 in October.

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

The first half of 2019 saw high levels of operational activity as we continue to develop Shaikan targeting a significant, phased, production uplift.  Despite some operational delays, we have made considerable headway towards our 55,000 bopd production target.

“Activity has further increased during H2 2019 as we remain on track to achieve this milestone in the first half of 2020.  As a consequence of the work to increase production in the longer term, the near-term production guidance for the full year has been reduced.  However, the Shaikan reservoir, the cornerstone of our equity story, continues to behave strongly.

“The Company has a robust balance sheet which supports operational funding requirements and expansion plans in addition to returning funds to shareholders.  The Company is therefore well positioned to deliver on its growth objectives for the benefit of all stakeholders.”

Full statement here.

(Source: Gulf Keystone Petroleum)

By John Lee.

Gulf Keystone Petroleum (GKP) has announced its intention to commence a share buyback programme, using the company’s existing cash resources to make market purchases of Gulf Keystone common shares for a maximum consideration of US$25 million, with the first stage of that programme being initiated now to purchase Gulf Keystone shares for an initial amount of US$15 million.  

The buyback programme is aligned with the company’s focus on capital allocation and will be an accretive use of funds whilst not impacting the company’s ability to continue the execution of its existing investment programme.  It will be executed in accordance with the company’s general authorities to make on market purchases which was approved by shareholders at the company’s AGM on 21 June 2019.

The company has entered into an agreement with its brokers Canaccord Genuity Limited and Peel Hunt LLP to carry out purchases of the Initial Amount under the buyback programme on its behalf on an irrevocable and non-discretionary basis.

(Source: GKP)

Genel Energy has announced the appointment of Mike Adams (pictured) as Technical Director, and PDMR, with immediate effect.

The appointment follows a repositioning of the role of Chief Operating Officer (‘COO’), which is now split into ‘pre-production’ and ‘on production’ business lines. Reporting to the Chief Executive Officer, Mike is responsible for all pre-production activities including exploration, appraisal, and new asset acquisitions.

Mike has 28 years of experience in the oil and gas industry in a wide variety of exploration, exploitation and global business development roles. Prior to joining Genel in 2012, Mike worked in a series of technical and leadership positions for companies including British Gas, Amerada Hess, Gulf Keystone Petroleum, and Sterling Energy.

Genel expects to appoint a new COO in due course, who will be responsible for the performance of operated and non-operated producing assets.

Mike has joined Genel’s Executive Committee, along with Vrijesh Kumar (‘VK’) Gupta, who has been appointed Head of HSE and Risk Management. VK joined Genel in 2014 as Head of HSSE. There has not been a lost time incident at Genel/TTOPCO operations since 2015, constituting over eight million working hours, and Genel hit its target of zero losses of primary containment in 2018. TTOPCO has also achieved a five star grading from the Five Star Occupational Health and Safety Audit, which was conducted by the British Safety Council.

VK has 30 years of experience in oil and gas industry. Immediately prior to joining Genel, he was Vice President for HSSE for BG Group, UK, and has worked with ONGC and Enron Oil & Gas.

Bill Higgs, Chief Executive of Genel, said:

As Genel’s operations expand we are growing capability across the Company. Work is beginning at both Sarta and Qara Dagh, which Mike was integral in bringing into the portfolio, and he and his team will work with Chevron to optimise the development of these assets. He will also drive our ongoing work to strengthen the Company through value-enhancing acquisitions. VK has done a great job in leading the development of our safety culture at Genel, and will continue to ensure that our focus remains on world-class performance.

“I am pleased to have them both join our Executive Committee, bringing their years of industry experience as we progress our growth plans.

(Source: Genel Energy)

Gulf Keystone Petroleum (GKP) has announced that Sami Zouari (pictured), Chief Financial Officer (CFO), will be stepping down as CFO and a Director of the Company during the second half of the year, and will leave the business by no later than 2 December 2019.

Mr Zouari has been CFO of GKP since January 2015 overseeing both financial and commercial activities in the company.  Since joining, he has played a key role in the strategic turnaround of the business, in particular leading the 2016 implementation of a new capital structure, materially strengthening the Company’s balance sheet and bringing about a significant debt reduction.  In addition, he has overseen the $100 million bond refinancing completed in 2018, and, most recently, was instrumental in the introduction of the Company’s maiden dividend policy.

In addition to remuneration in respect of his six-month notice period which will run from the date of this announcement, Mr Zouari will remain eligible to receive a pro rata bonus under the Executive Bonus Scheme for the 2019 financial year.  With respect to Mr Zouari’s current outstanding options held under the 2016 Value Creation Plan (VCP), these will be retained by Mr Zouari and will vest according to the rules and normal operation of the VCP, subject to performance conditions being attained.

A leading search firm will be appointed to find Mr Zouari’s successor and the process is expected to be concluded over the coming months.  A further announcement will be made in due course.

Jaap Huijskes, Chairman of the Company, said:

“On behalf of the Board, I would like to thank Sami for his substantial positive contribution over the past four and a half years.  He has played a pivotal role in bringing Gulf Keystone back from the brink of collapse and helping to shape it into the profitable company it is today.

“We wish Sami well for the future and look forward to an orderly handover to his successor over the coming months.”

Jón Ferrier, Chief Executive Officer, said: 

It has been a privilege to work with Sami who has been key in the overall turnaround of the company.  His legacy will be the strong financial position GKP enjoys today, which is in marked contrast to the Company he joined in early 2015. 

“I look forward to continuing to work closely with him over the coming months, at what remains an important time for us as we materially build production from the Shaikan Field.

“I echo the Chairman’s thanks for his important contribution to the Company throughout his tenure as CFO, and have no doubt that he will be employing his intellect, strategic grasp and leadership skills in his future endeavours.

(Source: GKP)