LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Friday said the Skaikan field in the Kurdistan region of Iraq has reached a significant milestone after cumulative production reached 25.0 million barrels of oil.As a result, Gulf Keystone said a USD10.0 million payment is now expected to be made to the Kurdistan regional government's Ministry of Natural Resources, as per the terms of the Shaikan production sharing contract.
"The company is currently in discussions with the Ministry of Natural Resources regarding the payment and offset mechanism of the production bonus available under the Shaikan production sharing contract," said the company.
Gulf Keystone is owed sums from the regional government for oil that has been previously exported out of the country through the Iraq-Turkey pipeline and could seek to offset the payment against the amount that is owed to the company.