Production rates from the field are at approximately 38 000 bpd and production currently continues unaffected by the impact of Covid-19. However, as a precaution, the company has restricted the access to its production facilities. As a result, certain construction activities related to the expansion to 55 000 bpd have also been suspended until circumstances improve.
The planned production increase to 55 000 bpd, scheduled for 3Q20, and average production guidance for 43 000 - 48 000 bpd remain priorities. However, the suspension of drilling and certain expansion operations may impact Gulf Keystone's ability to meet these targets in the timeframes currently in place. The company will release its Full Year results on 26 March 2020.
The company remains in a strong financial position, with a cash balance of US$159 million as at 13 March 2020.
Jón Ferrier, CEO, commented: "As a company we place the welfare of our people and those we work with and near as our absolute priority. We also have to be confident of having the right people on site to continue safe operations. Whilst we are not aware of any employees or contractors having been infected, we believe it is prudent to suspend drilling and certain production facility expansion operations during this time. We are watching the situation closely and will keep all of our stakeholders informed of developments. Meanwhile, the Shaikan field itself is performing well."
Read the article online at: https://www.oilfieldtechnology.com/drilling-and-production/16032020/gulf-keystone-petroleum-suspends-operations-in-iraqi-kurdistan/
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