Gulf Keystone Petroleum, which operates in Iraq’s semi-autonomous Kurdistan Area, is lowering its workforce by round 40 p.c in view of the unprecedented oil market and macroeconomic circumstances, the London-listed impartial oil firm said on Friday.
Gulf Keystone Petroleum operates the Shaikan Area northwest of Erbil beneath a Manufacturing Sharing Contract with the Kurdistan Regional Authorities (KRG) and has an 80-percent working curiosity within the Shaikan license.
Due to the oil worth crash, the corporate is lowering prices by slicing the workforce of round 400 individuals by some 40 p.c, together with over 60 p.c of expatriates, Gulf Keystone Petroleum stated in an operational and company replace on Friday.
“In response to the unprecedented COVID-19 pandemic and macroeconomic circumstances, we took decisive actions to protect liquidity and safeguard the long-term well being of the enterprise,” Gulf Keystone’s Chief Government Officer Jón Ferrier stated.
“While uncertainty across the timing of the tip of the disaster persists, the partial oil worth restoration provides us some grounds for optimism concerning the future and our return to delivering the numerous untapped worth in Shaikan,” the supervisor added.
In April, when oil costs slumped as a result of demand crash, Gulf Keystone Petroleum, the vendor of Shaikan crude oil, gave its oil away for free, as the value of its oil pumped from the Shaikan area traded greater than $21 beneath Brent costs. Brent Crude traded at a mean of $21.04 for April.
The corporate confirmed in late Could that it had “submitted an bill to the Kurdistan Regional Authorities for a 0 quantity because the month-to-month common Dated Brent worth in April was under the Shaikan crude low cost.”
“Following the rise within the Dated Brent worth over current weeks, the bill to be submitted for crude oil gross sales throughout Could 2020 will return to a optimistic quantity,” Gulf Keystone Petroleum stated final month.
By Charles Kennedy of Oilprice.com
Extra Prime Reads From Oilprice.com: