Political shifts for Gulf Keystone

To say that political risk has shaped the investment narrative at Gulf Keystone Petroleum (GKP) would be a gross understatement. In a largely favourable half-year update, the driller, whose operations are centred in Iraqi Kurdistan, said that it is gearing up to make new investments into the Shaikan field in order to to maintain production volumes at around 40,000 barrels of oil per day (bopd), before ratcheting up to a planned 55,000 bopd, subject to local approvals. The field has given up 36,664 bopd through to the half-year, but with production faltering in the third quarter, full-year guidance has been maintained at 32,000-38,000 bopd; the wide spread a pointer to the erratic operating environment.