DJ Report on Payments to Governments for 2024
Gulf Keystone Petroleum Ltd (GKP)
Report on Payments to Governments for 2024
02-Apr-2025 / 07:01 GMT/BST
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2 April 2025
Gulf Keystone Petroleum Ltd. (LSE: GKP)
("Gulf Keystone", "GKP" or "the Company")
Report on Payments to Governments for 2024
Introduction
This report sets out details of the payments made to governments by Gulf Keystone Petroleum Ltd and its subsidiary
undertakings ('Gulf Keystone') for the year ended 31 December 2024 as required under Disclosure and Transparency Rule
4.3A issued by the UK's Financial Conduct Authority ('DTR 4.3A') and in accordance with The Reports on Payments to
Governments Regulations 2014 (as amended in 2015) (the 'UK Regulations') and our interpretation of the Industry
Guidance on the UK Regulations issued by the International Association of Oil & Gas Producers. DTR 4.3A requires
companies listed on a stock exchange in the UK and operating in the extractive industry to publicly disclose payments
to governments in the countries where they undertake exploration, prospection, discovery, development and extraction of
minerals, oil, natural gas deposits or other materials.
Basis for preparation
Total payments below GBP86,000 made to a government are excluded from this report, as permitted under the UK Regulations.
All of the payments made in relation to the Shaikan Production Sharing Contract ('Shaikan PSC') in the Kurdistan Region
of Iraq have been made to the Ministry of Natural Resources ("MNR") of the Kurdistan Regional Government ("KRG").
Production entitlements
Production entitlements are the host government's share of production during the reporting period from the Shaikan
Field operated by Gulf Keystone. The figures reported have been produced on an entitlement basis, rather than on a
liftings basis. Production entitlements are paid in-kind and the monetary value disclosed is derived from management's
estimates based on the monthly oil sales invoices.
Royalties
Royalties represent royalties paid in-kind to governments during the year for the extraction of oil. The terms of the
royalties are described within the Shaikan PSC. Royalties have been calculated on the same basis as production
entitlements.
Licence fees and capacity building payments
These include licence fees, rental fees, entry fees, capacity building payments, security fees and other considerations
for licences or concessions.
Summary of payments
2024
Production entitlements in-kind(1) ('000 bbl) 4,987
Production entitlements in-kind(1) (USD'000) 134,261
Royalties in-kind(1) ('000 bbl) 1,192
Royalties in-kind(1) (USD'000) 32,098
Licence fees and capacity building payments in-kind(2) (USD'000) 8,566
Infrastructure improvement payments(3) 218
Total ('000 bbl) 6,177
Total (USD'000) 175,080 1. For the purposes of the reporting requirements under the UK Regulations, Gulf Keystone is required tocharacterise the value of the KRG's production entitlements under the PSC as a payment to the KRG. Throughout allof 2024, crude oil produced by Gulf Keystone was sold to local buyers. The KRG received its share of profit oil inaccordance with the PSC and sold the volumes directly to local buyers with the estimated value of such sales beingincluded as a payment to the KRG. 2. All sales in the period were sold locally with the KRG receiving capacity building volumes in-kind, whichthey then sold to local buyers. The value of licence, rental and security fees has been accrued and is not expectedto be cash settled, but rather offset against historic revenue due from the KRG, which has not yet been recognisedin the financial statements. 3. Support for local communities including drilling of water supply well and providing water filtrationequipment, purchase of generators following severe floods, planting olive trees and upgrade of road-calmingmeasures. In addition, provided training to local villagers including literacy programmes and sewing courses.
Enquiries:
Gulf Keystone: +44 (0) 20 7514 1400
Aaron Clark, Head of Investor Relations
& Corporate Communications aclark@gulfkeystone.com
FTI Consulting +44 (0) 20 3727 1000
Ben Brewerton
GKP@fticonsulting.com
Nick Hennis
or visit: www.gulfkeystone.com
Notes to Editors:
Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website www.gulfkeystone.com
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ISIN: BMG4209G2077 Category Code: MSCM TIDM: GKP LEI Code: 213800QTAQOSSTNTPO15 Sequence No.: 380847 EQS News ID: 2110052 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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April 02, 2025 02:01 ET (06:01 GMT)
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