Gulf Keystone Petroleum Ltd. Report on Payments to Govts (4483R)
June 30 2020 - 1:00AM
UK Regulatory
TIDMGKP
RNS Number : 4483R
Gulf Keystone Petroleum Ltd.
30 June 2020
.
30 June 2020
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("GKP" or "the Company")
Report on Payments to Governments for 2019
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 2019 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.
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)
(Mstb (3) ) 3,897
Production entitlements in-kind (1)
(2) ($ '000) 166,512
Royalties in-kind (1) (Mstb (3) ) 950
Royalties in-kind (1) (2) ($ '000) 40,573
Taxes in-kind (4) ($ '000) 2,803
Licence fees in-kind (5) ($ '000) 11,682
Total (Mstb (3) ) 4,847
Total ($ '000) 221,570
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) Thousand stock tank barrels of oil.
(4) Per the updated Crude Oil Sales Agreement (dated 26 February
2019 and valid until 31 December 2020), road tax is payable on
export sales of Shaikan crude oil transported by road from 1
January 2019 until 31 December 2019 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. From January 2020, all oil was transported via
pipeline.
(5) No cash payments were made by Gulf Keystone to the KRG.
Instead, the value of these fees has been accrued and will be
settled with the KRG upon finalisation of the second PSC
amendment.
Enquiries:
Celicourt Communications: + 44(0) 20 8434 2754
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. Further
information on Gulf Keystone is available on its website
www.gulfkeystone.com
Disclaimer
This announcement contains certain forward-looking statements
that are subject to the risks and uncertainties associated with the
oil & gas exploration and production business. These statements
are made by the Company and its Directors in good faith based on
the information available to them up to the time of their approval
of this announcement. Such statements should be treated with
caution due to inherent risks and uncertainties, including both
economic and business factors and/or factors beyond the Company's
control or within the Company's control where, for example, the
Company decides on a change of plan or strategy. This announcement
has been prepared solely to provide additional information to
shareholders to assess the Group's strategies and the potential for
those strategies to succeed. This announcement should not be relied
on by any other party or for any other purpose.
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
PGRFZGZVGLRGGZZ
(END) Dow Jones Newswires
June 30, 2020 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