Gulf Keystone Petroleum has signed a six-month contract with a crude oil buyer in Iraqi Kurdistan, it said on Monday, boosting the cashflow prospects of a company that is still owed oil payments from the autonomous government.

Under the new contract, Gulf Keystone will supply between 12,000 and 40,000 b/d to an unnamed local buyer, the company said.

The oil producer has already received a $4.9 million payment for first oil deliveries to the unnamed buyer, it said.

The deal will help Gulf Keystone to strengthen its balance sheet, which it said recorded a cash position of $68.7 million as of June 26.

The oil company is continuing discussions with the Kurdistan Regional Government (KRG) to establish a regular payment plan for crude oil purchases, it said.

The Shaikan oil field operated by Gulf Keystone is now producing more than 40,000 b/d after fixing a technical glitch, the company said.

Source: Reuters