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Kurdistan emerges from Isis conflict as stable oil producer

13th November 2014

Oil production in Kurdistan has been boosted by the Kurdistan Regional Government (KRG) agreeing to regular payment of producers

Kurdistan emerges from Isis conflict as stable oil producer
Gulf Keystone has switched from a pure exploration company into an active producer following its major Shaikan discovery in the region

The oil and gas prospects of the Kurdistan Region of Iraq (KRI) appear to have come out of the military conflict with Isis stronger than ever, as two major oil producers laud production levels and praise the regional government’s commitment to future growth.

“The third quarter of the year has been a watershed for the KRI oil industry,” said Genel’s chief executive, Tony Hayward.

This comes following today’s announcement that Genel, which focusses its operations in the region, has received government assurances of support over its Miran and Bina Bawi gas field developments.

“The region remains safe and secure, boosted by support from the international community. Liftings of KRI crude from Ceyhan have become regular and sales predictable, with money flowing back to the KRG.

“Exports will continue to rise and the KRG’s firm commitment to ensure contractors receive full entitlements will see a normalised payment process for this production early in 2015.”

The comments were echoed by fellow Kurdistan explorer Gulf Keystone, which has switched from a pure exploration company into an active producer following its major Shaikan discovery in the region.

Shaikan crude oil exports by truck to the Turkish coast have continued uninterrupted since 29 November 2013. All of Gulf’s production is currently being exported and nineteen tanker cargoes totalling 4.7 million gross barrels of Shaikan crude oil have been sold to the international market since the Shaikan crude oil export sales began from the port of Dortyol in January 2014.

"Gulf Keystone's production operations and export oil sales have continued uninterrupted in 2014,” said John Gerstenlauer, Gulf Keystone's chief executive officer.

“All current production is being exported by truck and these exports are set to increase in the coming months as we are nearing our production target of 40,000 bopd.

“As we stand by the Kurdistan Region and its people, we welcome the KRG's commitment to putting in place a regular payment cycle for oil exports from the region. As our production increases, we look forward to receiving our full contractual entitlement."

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