CEO's Message

A partial restart of operations in July 2023 allowed the Corporation to pursue local oil sales and generate revenue for the period. Although the price for oil sold to the local market is at a significant discount to international prices, full payment from local buyers is received in advance and the revenue from such sales helped the Corporation cover operating costs incurred during the quarter.

While it is understood that it is technically feasible for the Kurdistan Oil Export Pipeline to reopen, and that Turkey has agreed for exports to restart, no timeline for resumption has been announced. The Corporation continues to have dialogue with the Ministry of Natural Resources regarding collection of overdue payments for oil sales and the terms applicable for future oil sales; nevertheless, there continues to be a lack of clarity on these points.

Due to these unfortunate circumstances, the Corporation has implemented further cost-cutting measures, including staff layoffs. In addition, the Corporation’s work program remains largely suspended. These measures, together with oil sales to the local market, will support the preservation of liquidity while the export pipeline remains closed.

In addition to our commitment to resolving overdue payments from the Ministry of Natural Resources, management remains engaged with industry and government to stay informed and adapt to the evolving situation in the region.

Shane Cloninger     

Chief Executive Officer     

November 7, 2023