Gulf Keystone Petroleum set to boost production in KRI

Gulf Keystone Petroleum has taken a step forward towards increasing production from its operations in the Kurdistan Region of Iraq (KRI).

Gulf Keystone said it had installed links between the Shaikan-7, -8 and -10 wells and its existing production facilities PF -1 and PF-2, enabling first oil to flow to the facilities this month.

With the addition of the three new producing wells, total production of between 23,000 and 25,000 gross barrels of oil a day will rise to 40,000 a day.

Gulf Keystone is moving a rig near to Shaikan -10 to drill another well which is already linked to the production facilities. Shaikan crude oil exports by truck to the Turkish coast continue uninterrupted, the company added.

Chief executive John Gerstenlauer said: "Despite numerous challenges earlier this year, Gulf Keystone has completed the work on the three additional producers on time.

"We are now testing the flow-line connections, including an 11 km link between Shaikan-10 and PF-2, and look forward to boosting Shaikan production to our near-term target of 40,000 bopd."

Shares rose 2.25p or 4.5% to 52p at 09:11 in London.