Gulf Keystone to resume exports through Iraq-Turkey pipeline

(Sharecast News) - Shares in Gulf Keystone Petroleum rallied on Friday, after the London-listed oil and gas producer confirmed it would resume international Kurdistan crude exports. A protracted row between Ankara and Baghdad led to the 600 mile Iraq-Turkey pipeline - which runs from Kirkuk in Iraq to the port city of Ceyhan in Turkey - being shut being for two years.

However, earlier this week it was announced that exports would resume after a deal was signed between the Iraqi and Kurdish governments. Turkey also confirmed it is willing to restart the pipeline.

Gulf said it - along with various other oil companies - had signed agreements with both the Kurdistan regional government and Iraq enabling the resumption of international crude exports from Kurdistan.

Pipeline exports from the Shaikan field are now expected to restart "in the coming days", it added.

As at 1100 BST, shares in firm were up 5% at 217.94, having come off earlier highs of 224p.

Bermuda-registered Gulf is exclusively focused on the semi-autonomous Kurdistan region of Iraq.

Jon Harris, chief executive, said: "The restart of Kurdistan crude exports via the pipeline is a historic milestone for Gulf Keystone, Kurdistan and Iraq that is expected to unlock significant value for all stakeholders.

"A return to international sales prices will be transformative for the company's cash flow, while we believe the agreements [with Kurdistan and Iraq], along with the production sharing contracts, will facilitate long-term profitable investment in Kurdistan's oil and gas reserves, of which the Shaikan field accounts for a significant proportion."