Gulf Keystone Petroleum has signed a six-month contract with a crude oil buyer in Iraqi Kurdistan, it said on Monday, boosting the cashflow prospects of a company that is still owed oil payments from the autonomous government.
Under the new contract, Gulf Keystone will supply between 12,000 and 40,000 barrels of oil per day (bpd) to an unnamed local buyer, the company said.
The oil producer has already received a $4.9 million payment for first oil deliveries to the unnamed buyer, it said. The deal will help Gulf Keystone to strengthen its balance sheet, which it said recorded a cash position of $68.7 million as of June 26.
The oil company is continuing discussions with the Kurdistan Regional Government (KRG) to establish a regular payment plan for crude oil purchases, it said. The Shaikan oil field operated by Gulf Keystone is now producing more than 40,000 bpd after fixing a technical glitch, the company said.
Author: Reuters
