DUBAI: Iraqi Kurdistan-based independent oil producer Gulf Keystone announced a special dividend of $25 million, citing strong oil prices and an improving economy.
The special dividend is in addition to an annual dividend of $25 million, both of which will be voted on at the company’s AGM on June 18, Gulf Keystone said in a filing to the London Stock Exchange on Thursday.
“We will continue to balance investment in growth and returns to shareholders as we develop and realise value from the Shaikan Field for the benefit of all stakeholders,” the company said in the filing.
Separately, Gulf Keystone said it had received a letter from the Kurdistan Regional Government (KRG) proposing amended terms for the payment of arrears because of the COVID-19 pandemic.
The KRG suggested that its monthly arrears payment be calculated as 20 percent (previously 50 percent) of the difference between the average Brent crude price and $50 per barrel, multiplied by the gross Shaikan crude volumes sold in a month. Outstanding payments between November 2019 and February 2020 stand at $65 million.
The proposal is yet to be discussed with the KRG or been accepted by Gulf Keystone, it said.
Gulf Keystone is the operator of the Shaikan Field, one of the largest developments in the Kurdistan Region of Iraq.
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