Reuters reported that Britain’s Gulf Keystone Petroleum is to raise USD 200 million to bolster its resources as it pushes to expand its oil exploration and development in Iraq’s Kurdish Regional Government.

The company said that it was launching USD 200 million of convertible bonds due Oct 2017 with an annual coupon of between 5.875 and 6.625%. The funds would be used to help it move to large scale development of a commercial oil find made at its Shaikan block in August drill deeper there and explore neighboring blocks. In addition to being an important milestone for the company.

Mr Todd Kozel CEO of Gulf Keystone said that this financing shows an increasing confidence of international markets in doing business in the KRG territory. Baghdad and the KRG agreed last month to draw a line under a dispute over oil contracts, with the central government saying it would pay foreign companies and KRG resuming halted shipments. The dispute had flared up after the KRG had angered the central government by signing deals with foreign oil firms that Baghdad said were illegal.

Source - Reuters

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