KRG proposed amendment to payment terms

13 May 2021

Gulf Keystone Petroleum Ltd. (LSE: GKP)

("Gulf Keystone", "GKP" or "the Company")

KRG proposed amendment to payment terms

Gulf Keystone, in line with other operators, has received a letter from the Kurdistan Regional Government ("KRG") proposing an amendment, starting with the March 2021 production invoice, to payment terms due to the ongoing challenges in Iraq with the COVID-19 pandemic.

The KRG has noted that since the dated Brent price has remained consistently well above $50 per barrel, the monthly repayment of outstanding arrears will now be calculated as 20% (compared to 50% previously) of the difference between the average monthly dated Brent price and $50 per barrel multiplied by the gross Shaikan crude oil volumes sold in a month. The balance for the November 2019 to February 2020 outstanding invoices currently stands at $65 million.

The KRG has stated that payment will now be 60 days after submission of each invoice.

The KRG has also stated that should international oil markets see substantial volatility, it commits to re-evaluating this payment model.

The proposal has not yet been discussed with the KRG or accepted by the Company.

Enquiries:

or visit: www.gulfkeystone.com 

Notes to Editors:

Gulf Keystone Petroleum Ltd. (LSE: GKP) is a leading independent operator and producer in the Kurdistan Region of Iraq. Further information on Gulf Keystone is available on its website www.gulfkeystone.com

Disclaimer

This announcement contains certain forward-looking statements that are subject to the risks and uncertainties associated with the oil & gas exploration and production business.  These statements are made by the Company and its Directors in good faith based on the information available to them up to the time of their approval of this announcement but such statements should be treated with caution due to inherent risks and uncertainties, including both economic and business factors and/or factors beyond the Company's control or within the Company's control where, for example, the Company decides on a change of plan or strategy.  This announcement has been prepared solely to provide additional information to shareholders to assess the Group's strategies and the potential for those strategies to succeed.  This announcement should not be relied on by any other party or for any other purpose.