• 5 minutes China Faces Economic Collapse
  • 8 minutes ZeroHedge: Oil And Gas Bankruptcies To Accelerate As $137 Billion Debt Matures Over Next Two Years
  • 11 minutes Trump Will Win In 2020
  • 14 minutes Oil Production Growth In U.S. Grinds To A Halt
  • 6 hours The Belt & Road Initiative: A Wolf in Sheep's Clothing?
  • 5 hours Democrats and Gun Views
  • 6 hours How OPEC and OECD play their role in setting oil price in light of Iranian oil sanction ?? Does the world agree with Iran's oil sanctions ???
  • 6 mins Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 7 hours Buy Oil Monday?
  • 2 hours Swedish Behavioral Scientist Suggests Eating Humans to ‘Save the Planet’ from Climate Change. What could possibly go wrong?
  • 12 mins Cost of oil
  • 4 hours “Who’s going to bail out the Central Banks?”
  • 3 hours Trump Orders Biofuel Boost
  • 12 hours It's the demand, Stupid
  • 9 hours Long Range Attack On Saudi Oil Field Ends War On Yemen
  • 6 hours Green New Deal Preview in Texas Town
  • 6 hours Used Thin Film Solar Panels at 15 Cents per Watt
Alt Text

Oil Rally Continues As Bulls Gain Confidence

The shakeup within Saudi Arabia’s…

Alt Text

A New Era For Saudi Oil

The replacement of Saudi Oil…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

Gulf Keystone Wins Legal Battle over Kurdistan

There is a lot of talk that UK-based Gulf Keystone Petroleum Ltd. (GKP)—a Kurdistan exploration darling—is ripe for takeover, even more so now that it has won against forces who sought a $1.6 billion stake in the company’s oilfields in northern Iraq.

Earlier this week, a London court ruled in favor of Gulf Keystone, paving the way for the company’s stocks to start performing as well as its competitors in Kurdistan. There’s nothing to hold it back now.

It was Excalibur Ventures LLC and former US Special Forces captain Rex Wempen who brought the lawsuit against Gulf Keystone, claiming that he was promised a 30% share worth $1.6 billion for setting up the deal.

The lawsuit had some traction because Wempen isn’t just a former Special Forces elite who was in the right place at the right time to help Gulf Keystone get connected in Kurdistan; he is also a founding member of the US-Kurdistan Business Council.

Related Article: Oil-Rich Iraqi Kurds May Go it Alone

Gulf Keystone’s argument—upheld by the court in London—was that Wempen and Excalibur couldn’t meet their end of obligations in the deal to sustain a 30% share. More specifically, Excalibur didn’t have necessary financial resources to help with exploration. As such, the judge ruled that Wempen’s claim on Gulf Keystone’s big find in 2009 was not valid.

Now that Gulf Keystone has this lawsuit out the way—after a six-month trial that closed in March--analysts expect promising results for its stocks.

Now is an exciting time for producers in Kurdistan, which is about to put a new pipeline online running directly to Turkey, bypassing the Iraqi central authorities in Baghdad and pumping for oil and gas independence.

Gulf Keystone is targeting a production level of 400,000 barrels a day by 2018 from its Shaikan oilfields. And even though it’s got a great play here and the future looks bright, this lawsuit has kept its stocks from performing like they should have.

Related Article: Iraqi Oil Exports Slump But Optimism Abounds

While Anglo-Turkish Genel Energy Plc—the largest producer in Kurdistan—has seen its stocks jump more than 20% this year on hopes for more production and easier transport to markets, Gulf Keystone has seen only a 7% rise.

For now, Gulf Keystone has already spent $780 million in Kurdistan, and it expects to start production soon at about 40,000 bpd for this year, which will enable it to continue developing its fields.

What potential buyers are looking at is how Gulf Keystone will monetize the giant Shaikan oilfield where sour crude isn’t yet of export quality and billions in capital are still needed to make this happen.

By. Charles Kennedy of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Suzanne Scott on September 14 2013 said:
    this is indeed news and very interesting too bad the good guys could not get the capital to finance their share what a disappointment....money talks....

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play