More than $100 million was paid out to the Kurdish government as part of a production-sharing contract, struggling Gulf Keystone Petroleum said. The company said Monday it paid out $112.5 million to the Kurdish Ministry of Natural Resources as part of its production-sharing contract for the Shaikan reserve area in northern Iraq. Royalties equated to around $23.5 million.
Total considerations were made for production of 5.3 million barrels for the year ending Dec. 31, the company said in its disclosure. Last year, Gulf Keystone said it was looking for partners or potential buyers as part of a long-term strategic review. Struggling during the market slump, the company in late August launched an open offer for around 2.3 million common shares in an effort to raise $25 million in capital. The company, which lists headquarters in London, reached an agreement this year with the majority of its creditors and shareholders to restructure its debt obligations and new management was appointed to help steer a $500 million debt conversion proposal.