Gulf Keystone aims to create value for all stakeholders through a phased increase in production at Shaikan, whilst maintaining strict financial discipline and a strong track record of safe operations.
Gulf Keystone has utilised its knowledge of Shaikan’s underlying reservoir and focused on de-risking its planned expansion of the licence. Along with its partner MOL, the Company has the right team in place to oversee the project and has ensured its phased investment approach carries low execution risk.
Optimise Field Development Plan
The shared development vision of the Shaikan Field is described by the revised Field Development Plan, re-submitted in May 2019. GKP continues to work with the Ministry of Natural Resources to agree the development plan for Shaikan, for the benefit of all parties.
Gulf Keystone remains focused on increasing output from Shaikan. The phased investment plan set out in the FDP will see production increase to 110,000 bopd in the longer term. Works for the 55,000 bopd expansion plan are firmly underway, with the Company on track to achieve this uplift in output in Q3 2020.
The Board and senior management team are firmly focused on generating value for the Company’s stakeholders. This will be achieved through a strong focus on costs, safe and reliable operations and optimising field performance. The Company announced a dividend distribution policy in 2019, with an annual dividend on the common shares of the Company of no less than $25 million per financial year.
The achievement of the Company’s strategic objectives will allow GKP to deliver sustainable value generating returns to its shareholders and the Kurdistan Region of Iraq.
Gulf Keystone’s strategic priorities
Continue to minimise HSSE risks by providing outstanding safety training and ensuring a comprehensive strategy is in place which is implemented throughout the business.
Increase Shaikan production in line with the Company’s vision, using a phased and risk-managed approach. Prolonging life of existing wells through active management and an infill well programme.
Prudently managing costs as production at the Shaikan Field increases.
The Company plans to further develop the Shaikan Field via a phased and risk-managed approach, and is on track to achieve its production target of 55,000 bopd in Q3 2020.
With safe and reliable operations, a proven production track record and 578 Million Stock Tank Barrels of 2P reserves, the Company is currently executing an exciting investment phase with the vision to increase gross production to 110,000 bopd over time.