Production and marketing update of Shaikan field
Zenith Pure Oil Plc. hereby informs the capital market participants that our partner Gulf Keystone Petroleum Limited (GKP) provided an update on operations at the Shaikan block.
In line with that Zenith Pure Oil hereby announces that Gulf Keystone, the operator of the Shaikan field in the Kurdistan Region of Iraq, confirms that it continues to produce in excess of gross 40,000 barrel of oil equivalent per day (boepd) following the successful completion of de-bottlenecking operations at PF-1.
As a result of the continuing dialogue with the Kurdistan Regional Government’s Ministry of Natural Resources (“MNR”) to establish a regular payment cycle for all oil sales both current and historic, the Partners have now adopted a diversified marketing strategy. Currently sales of Shaikan oil comprise crude oil export deliveries by truck to the Turkish coast and sales to a domestic buyer under a new six months contract with provides for offtake of between 12,000 and 40,000 boepd.
Total payments of gross USD 9.8 million in respect of domestic deliveries, comprising gross USD 4.9 million for crude oil sales previously delivered in 2014 and gross USD 4,9 million as the first payment for deliveries under the new six months domestic offtake contract have been received by the Operator.