("Gulf Keystone", "GKP" or "the Company")
Report on Payments to Governments for 2021
Introduction
This report sets out details of the payments made to governments by
Basis for preparation
Total payments below
All of the payments made in relation to the Shaikan Production Sharing Contract ("Shaikan PSC") in the
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 based on the monthly oil sales invoices.
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.
Licence fees and capacity building payments
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 infrastructure is expected to be primarily dedicated to operational activities throughout its useful life.
KRG | |
Production entitlements in-kind (1) (mboe (2)) | 5,151 |
Production entitlements in-kind (1) ($ '000) | 255,763 |
Royalties in-kind (1) (mboe (2)) | 1,255 |
Royalties in-kind (1) (2) ($ '000) | 62,320 |
Licence fees and capacity building payments in-kind (3) ($ '000) | 17,385 |
Infrastructure improvement payments (4) ($ '000) | 342 |
Total (mboe (2)) | 6,406 |
Total ($ '000) | 335,811 |
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
(2) Thousand barrels of oil.
(3) Capacity building payments are deducted from the monthly crude oil sales invoice, no direct payment is made to the KRG. The value of licence, rental and security fees has been accrued and is not expected to be paid, but rather offset against revenue due from the KRG related to pre-
(4) Drilling of water well, construction of water supply network and purchase of generators.
Enquiries:
Gulf Keystone: | +44 (0) 20 7514 1400 |
aclark@gulfkeystone.com | |
+ 44(0) 20 8434 2754 | |
Mark AntelmeJimmy Lea | GKP@Celicourt.uk |
or visit: www.gulfkeystone.com
This information is provided by RNS, the news service of the
https://news.cision.com/gulf-keystone-petroleum-limited/r/report-on-payments-to-govts,c3560673
https://mb.cision.com/Main/19838/3560673/1574886.pdf
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