Gulf Keystone Petroleum has unveiled plans to build a pipeline through Turkey to export oil from its giant Shaikan discovery in Iraqi Kurdistan by 2013.
The pipeline would be funded by selling a minority stake in the Akri-Bijeel block. Todd Kozel, chairman and chief executive of Gulf Keystone Petroleum did not put a figure on the sale but offering would be for a 20 per cent in the block which is majority owned by partner MOL Hungarian Oil & Gas.
The sale would enable Gulf Keystone Petroleum to pursue feasibility plans to build an export pipeline through Turkey. The plan would be to build a pipeline capable of carrying 440,000 bpd north from its Shaikan field to the Kirkuk-Ceyhan export pipeline.
Gulf Keystone aims to be producing 15,000 bpd by the end of the year, which can be used locally and transported by truck but an export pipeline would be essential if the company wanted to reach its objective of producing 440,000 bpd.
Todd Kozel, chairman and chief executive of Gulf Keystone Petroleum, said it remained well funded to continue exploration work across its Shaikan, Sheikh Adi and Ber Bahr fields in northern Iraq.
Results for the first six months to June showed the company had net cash of US$137mn.
