Oil and gas explorer Gulf Keystone Petroleum has clinched a six-month deal with a crude oil buyer in Iraqi Kurdistan.
Under the terms of the agreement, the London-listed group will supply between 12,000 and 40,000 barrels of oil per day (bpd) to an unnamed local buyer, the company said, adding it had already received a $4.9m payment for first oil deliveries.
The deal is expected to boost Gulf Keystone's balance sheet, which recorded a cash position of $68.7m as of June 26, although the company is still owned oil payments from the region's government.
The group said discussions with the Kurdistan Regional Government to establish a regular payment plan for crude oil purchases were underway and it hoped to reach a solution over the coming months.
Meanwhile, Gulf said its Shaikan oil field was now producing more than 40,000 bpd after fixing a technical glitch.