Gulf Keystone Petroleum has temporarily suspended export crude deliveries from the Kurdistan Region of Iraq.
The company said it remained in a dialogue with the Kurdistan Regional Government’s Ministry of Natural Resources in order to receive outstanding payments due to the company.
A spokesman said in the interim Gulf Keystone would be recommencing crude oil supply for local Kurdistan use.
It provides the prospect of receiving revenues in the near term but in the meantime the export crude oil deliveries by truck have therefore been temporarily suspended.
It is expected to be a short term measure until a regular payment cycle can be established for sales via the export route.
John Gerstenlauer, Gulf Keystone’s chief executive, said: “Further to the oil export agreement between the Kurdistan Regional Government and Federal Government of Iraq reached in December 2014, and the recent passing of Iraq’s 2015 federal budget, we remain confident that a stable payment cycle will be established in the near term, and we expect to receive payment for all past and ongoing oil sales from Shaikan.
“The Company is taking a prudent approach to its capital expenditure in 2015 and is striving to ensure consistent and stable revenues in the short-term, which a return to the domestic market provides. Meanwhile, a number of longer term financing options are currently being progressed by the Board.”