Gulf Keystone Petroleum (GKP) gets much-needed revenues and a second payment starts to give Kurdistan companies (and investors) a taste that these payments could be the start of regular, reliable cash flows. We note Genel and DNO have yet to announce payments themselves, but would be surprised not to see these in the near future.

Two swallows do not make a summer, but once confidence in the payments (for current and historic production) is high, the Kurdistan companies will be able to fund further development in their assets, whether that is offsetting potential declines (Taq Taq/Tawke) or increasing production (Shaikan), or investing in new capacity (Sheikh Adi, Ber Bahr, Peskabir, Chia Surkh).

Tags: Gulf Keystone Petroleum