The following are the specifics of Gulf Keystone Petroleum (GKP)’s payments to governments for the year 2023:
Presentation
This report sets out subtleties of the installments made to states by Bay Cornerstone Petrol Ltd and its auxiliary endeavors (“Bay Cornerstone”) for the year finished 31 December 2023 as expected under Revelation and Straightforwardness Rule 4.3A gave by the UK’s Monetary Direct Authority (“DTR 4.3A”) and as per The Reports on Installments to Legislatures Guidelines 2014 (as altered in 2015) (“the UK Guidelines”) and our translation of the Business Direction on the UK Guidelines gave by the Worldwide Relationship of Oil and Gas Makers. DTR 4.3A requires organizations recorded on a stock trade in the UK and working in the extractive business to freely unveil installments to states in the nations where they embrace investigation, prospection, disclosure, improvement and extraction of minerals, oil, flammable gas stores or different materials.
Reason for planning
All out installments beneath £86,000 made to an administration are barred from this report, as allowed under the UK Guidelines.
The Kurdistan Regional Government’s Ministry of Natural Resources (MNR) received all payments related to the Shaikan Production Sharing Contract (also known as the Shaikan PSC) in the Kurdistan Region of Iraq.
Creation privileges
Creation privileges are the host government’s portion of creation during the revealing time frame from the Shaikan Field worked by Bay Cornerstone. Instead of using liftings to calculate the figures, an entitlement basis was used. Creation qualifications are paid in-kind and the money related esteem uncovered is gotten from the board’s appraisals in view of the month to month oil deals solicitations.
Sovereignties
Sovereignties address eminences paid in-kind to state run administrations during the year for the extraction of oil. The Shaikan PSC explains the terms of the royalties. Production entitlements and royalties have been calculated similarly.
Fees for licenses and concessions, such as rent, entry fees, payments for capacity building, security fees, and other fees, are all examples of license fees.
An overview of payments
2023 | |
| Production entitlements in-kind(1) (mboe(2)) | 2,658 |
| Production entitlements in-kind(1) ($’000) | 109,345 |
| Royalties in-kind(1) (mboe(2)) | 637 |
| Royalties in-kind(1, 2) ($’000) | 26,221 |
| Licence fees and capacity building payments in-kind(3) ($’000) | 7,522 |
| Total (mboe(2)) | 3,295 |
| Total ($’000) | 143,087 |
1.The KRG sold crude oil that was produced by Gulf Keystone and entered the Iraq Turkey Pipeline (the “ITP”) until pipeline exports were stopped on March 25, 2023. All sales proceeds were received by or on behalf of the KRG during this time, and the KRG paid Gulf Keystone for cost and profit oil in accordance with the Shaikan Production Sharing Contract (“PSC”) in return for the crude oil it received. Gulf Keystone received payments from the KRG rather than Gulf Keystone in accordance with these arrangements. Gulf Keystone is required to characterize the value of the KRG’s production entitlements under the PSC, for which the KRG receives payment directly from the market, as a payment to the KRG for the purposes of the reporting requirements outlined in the UK Regulations. Gulf Keystone’s crude oil was sold to local buyers on July 19, 2023. In accordance with the PSC, the KRG received its share of profit oil and received a payment equal to the estimated value of the volumes sold to local buyers.
2.Thousand barrels of oil.
3.For unrefined petroleum deals into the ITP from 1 January 2023 to 25 Walk 2023, limit building installments were deducted from the month to month unrefined petroleum deals receipt sum payable to Inlet Cornerstone and no immediate installment was made to the KRG. The KRG received capacity building volumes in kind for local sales from 19 July 2023 to 31 December 2023, when they sold them to local buyers. Licensing, rental, and security fees have accrued value and are not expected to be paid. Instead, they will be deducted from previous KRG revenue that has not yet been recorded in the financial statements.
