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Gulf Keystone Petroleum Ltd and Genel Energy PLC on Friday noted that an agreement has been struck to resume crude oil exports from Kurdistan through a key pipeline. The duo said several oil firms have signed agreements with the Kurdistan regional government and the Iraqi government ‘to enable the restart of international crude exports from Kurdistan’. The restarts of crude exports through the Iraq-Turkey pipeline is a ‘historic moment’ for Gulf Keystone, the operator of the Shaikan oil field said. Shaikan is among the largest discoveries in the Kurdistan region of Iraq, according to Gulf Keystone. ‘A return to international sales prices will be transformative for the company’s cash flow while we believe the signed agreements with the KRG and [federal government of Iraq], along with the production sharing contracts, will facilitate long term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan field accounts for a significant portion. We are delighted to have reached this successful resolution and are looking forward to the future as we remain focused on driving value for Gulf Keystone shareholders,’ Chief Executive Officer Jon Harris said. Genel Energy, which has a 25% stake in the Tawke licence in Kurdistan, noted the asset’s operator DNO ASA has been ‘instructed to prepare for commencement of oil exports’ through the pipeline from Saturday. ‘DNO accordingly will deliver the Kurdistan regional government’s share of sales from the company’s operated Tawke licence, currently averaging 38,000 barrels a day, for export. The balance of the oil, representing the share of sales the foreign contractor group consisting of DNO and Genel Energy International Limited, currently averaging 30,000 barrels a day, will continue to be sold to local buyers under existing contracts,’ Genel said. Gulf Keystone shares were 3.1% higher at 215.00 pence each in London on Friday morning. Genel was up 0.39 at 75.60p. In Oslo, DNO was down 1.9% at NOK15.74. DNO said that for now, it has opted not ‘engage directly in exports’ and continue selling its oil to its buyers at a price in the low ‘$30s’ to its buyers. ‘But we understand our buyers have set up their own arrangements to place oil purchased from us into the export pipeline, a move we welcome as it supports the larger export project,’ DNO Executive Chair Bijan Mossavar-Rahmani said. Gulf Keystone noted that in the current arrangement, oil firms will be compensated for exported production to help cover the cost of output and transportation. This interim arrangement is set to last three months. ‘As a result, the company expects an improvement in Shaikan field realised prices to above $30/bbl in this interim period compared to $27-28/bbl in local sales,’ Gulf Keystone. Turkey closed the Iraq-Turkey pipeline back in March 2023 after the International Chamber of Commerce ruled in favour of Baghdad in an arbitration case against Iraq’s autonomous Kurdistan region. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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