(Alliance News) - Gulf Keystone Petroleum Ltd on Friday said it continues to believe that the suspension of exports following Turkey's closure of the Iraq-Turkey pipeline will be temporary, as the amount of deferred oil exports kept growing.
The Iraq-focused oil field operator said the suspension of exports has resulted in a gross production deferment of around 4.3 million barrels or 11,800 barrels of oil per day, up from 2.0 million and 8,000 bopd reported in late May.
Gulf Keystone said that it continues to engage with the Kurdistan regional government, which it said had reached an agreement with the Iraqi government on measures to allow the resumption of oil exports through Turkey. It added that the discussions between the Kurdistan regional government, the Iraqi ministry of oil and Turkish authorities are ongoing.
Meanwhile, its cash balance has reduced by 6.1% to USD93 million on June 15 from USD99 million on April 26.
In March, Turkey closed the Iraq-Turkey pipeline after the International Chamber of Commerce ruled in favour of Baghdad in an arbitration case against Iraq's autonomous Kurdistan region.
Iraq in 2014 launched the proceedings against neighbouring Turkey, claiming exclusive rights over Kurdistan's oil exports.
But in defiance of Baghdad, the regional government in Arbil continued to export oil through Turkey at a rate of around 450,000 barrels a day.
Iraq's oil ministry had said that the Paris arbitration tribunal had ruled that Baghdad's State Oil Marketing Organization "is the only entity authorised to manage exports".
The Kurdistan government sees Baghdad as trying to profit from the region's resources, while the Iraqi government argues it should enjoy sovereign control over all of the country's oil production.
Gulf Keystone shares traded 0.8% higher at 134.52 pence each in London on Friday morning.
By Tom Budszus, Alliance News reporter
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