TIDMGKP
RNS Number : 9571S
Gulf Keystone Petroleum Ltd.
29 June 2018
.
29 June 2018
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("GKP" or "the Company")
Report on Payments to Governments for 2017
Introduction
This report sets out details of the payments made to governments
by Gulf Keystone Petroleum Ltd and its subsidiary undertakings
("Gulf Keystone") for the year ended 31 December 2017 as required
under Disclosure and Transparency Rule 4.3A issued by the UK's
Financial Conduct Authority ("DTR 4.3A") and in accordance with The
Reports on Payments to Governments Regulations 2014 (as amended in
2015) ("the UK Regulations") and our interpretation of the Industry
Guidance on the UK Regulations issued by the International
Association of Oil & Gas Producers. DTR 4.3A requires companies
listed on a stock exchange in the UK and operating in the
extractive industry to publicly disclose payments to governments in
the countries where they undertake exploration, prospection,
discovery, development and extraction of oil and natural gas
deposits or other materials.
This report is available to download on the Company's website:
http://www.gulfkeystone.com/investor-centre/presentations-and-reports.
Basis for preparation
Total payments below GBP86,000 made to a government are excluded
from this report, as permitted under the UK Regulations.
All of the payments made in relation to the Shaikan Production
Sharing Contract ("Shaikan PSC") in the Kurdistan Region of Iraq
have been made to the Ministry of Natural Resources ("MNR") of the
Kurdistan Regional Government ("KRG").
Production entitlements
Production entitlements are the host government's share of
production during the reporting period from the Shaikan Field
operated by Gulf Keystone. The figures reported have been produced
on an entitlement basis, rather than on a liftings basis.
Production entitlements are paid in-kind and the monetary value
disclosed is derived from management's calculation of estimated
revenue.
Royalties
Royalties represent royalties paid in-kind to governments during
the year for the extraction of oil. The terms of the royalties are
described within the Shaikan PSC. Royalties have been calculated on
the same basis as production entitlements.
Taxes
Taxes include taxes levied on the income, production or profits
of companies, excluding taxes levied on
consumption such as value added taxes, personal income taxes or
sales taxes.
Bonuses
Bonuses include signature, discovery and production bonuses.
Licence fees
These include licence fees, rental fees, entry fees, capacity
building payments, security fees and other considerations for
licences or concessions.
Infrastructure improvement payments
These include payments for infrastructure improvements, whether
contractual or otherwise, such as roads, other than in
circumstances where the road is expected to be primarily dedicated
to operational activities throughout its useful life.
Summary of payments
KRG
Production entitlements in-kind (1)
(bbls (3) ) 4,959,941
Production entitlements in-kind (1)
(2) ($) 168,211,434
Royalties in-kind (1) (bbls (3) ) 1,286,179
Royalties in-kind (1) (2) ($) 43,459,536
Taxes in-kind (4) ($) 1,254,823
Bonuses ($) -
Licence fees in-kind (5) ($) 17,594,546
Infrastructure improvement payments
($) -
Total (bbls (3) ) 6,246,120
Total ($) 230,520,340
Notes
(1) All of the crude oil produced by Gulf Keystone was sold by
the KRG. All proceeds of sale were received by or on behalf of the
KRG, out of which the KRG then made payment for cost oil and profit
oil in accordance with the Shaikan PSC to Gulf Keystone, in
exchange for the crude oil delivered to the KRG. Under these
arrangements, payments were made by or on behalf of the KRG to Gulf
Keystone, rather than by Gulf Keystone to the KRG. However, for the
purposes of the reporting requirements under the UK Regulations, we
are required to characterise the value of the KRG's production
entitlements under the Shaikan PSC (for which the KRG receives
payment directly from the market) as a payment to the KRG.
(2) The realised prices for crude oil sales remain subject to audit and reconciliation.
(3) Barrels of oil.
(4) Per the Crude Oil Sales Agreement (dated 10 January 2018),
road tax was payable on export sales of Shaikan crude oil
transported by road from 15 November 2017 onwards at $7/ton. The
road tax was paid in kind, as the value of the road tax was
deducted in calculating the value of production entitlements
payable by the KRG to Gulf Keystone.
(5) No cash payments were made by Gulf Keystone to the KRG.
Instead, the value of these fees was offset against the value of
production entitlements owed by the KRG to Gulf Keystone for crude
oil delivered.
Enquiries:
Gulf Keystone Petroleum: +44 (0) 20 7514 1400
Jón Ferrier, CEO
Sami Zouari, CFO
Celicourt Communications: +44(0) 20 7520 9266
Mark Antelme
Jimmy Lea
or visit: www.gulfkeystone.com
Notes to Editors:
-- Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading
independent operator and producer in the Kurdistan Region of Iraq
and the operator of the Shaikan field with current production
capacity of 40,000 barrels of oil per day
-- Further information on Gulf Keystone is available on its website www.gulfkeystone.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
PGRFKFDQQBKDQAB
(END) Dow Jones Newswires
June 29, 2018 02:00 ET (06:00 GMT)
Gulf Keystone Petroleum (LSE:GKP)
Historical Stock Chart
From Apr 2024 to May 2024
Gulf Keystone Petroleum (LSE:GKP)
Historical Stock Chart
From May 2023 to May 2024