Gulf Keystone to see changes in Kurdistan oil interest

10 January 2012

Kurdish government may exercise clause bringing in new party on licences

The UK’s Gulf Keystone has confirmed it may see possible amendments to its production sharing contract with the semi-autonomous Kurdistan Regional Government (KRG) for the Akri-Bijeel and Shaikan blocks.

Under the agreements, the KRG reserves the option to nominate a third party and assign it stakes in the blocks, according to an operational update released on 9 January.

Gulf Keystone will issue an announcement when the party is nominated. The company is the operator of the Shaikan block with a 75 per cent stake, along with the Hungary’s MOL and the US’ Texas Keystone. The field holds an estimated 8 billion barrels of oil.

It also has a 20 per cent stake in the Akri-Bijeel block operated MOL. If the KRG exercises its rights in full, the Gulf Keystone expects its interest in the Shaikan and the Akri-Bijeel blocks to drop to 51 per cent and 12.8 per cent respectively.

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