JF: As we announced, at the end of February 2017, the MNR began exporting all Shaikan crude production via trucks to Turkey, an arrangement that still stands,
meaning that no Shaikan crude is currently being injected into the Kirkuk-Ceyhan export pipeline at Fishkhabour. However, we expect this to be a temporary arrangement and the long-term future of Shaikan production will be based on pipeline export. While this temporary route is in place, the MNR has confirmed that the economic benefit to the Group will be the same as that of the previous framework and that we will continue to receive a fixed payment of $15 million gross per month for sales of our crude, while they also intend to take full responsibility for any additional transportation costs. The economic neutrality of this arrangement is of course welcome, however, making progress on the planning of longer-term pipeline export arrangements, the main benefit of which would be reduced costs and HSSE exposure, is a priority for 2017.