Gulf Keystone has won a court battle over a bid to claim almost a third of its operations in Kurdistan.
The company, which holds a 75% stake in the giant Shaikan field, along with 80% of the Sheikh Adi block and minority stakes in two further blocks in the country, had been pursued in the courts for years by Excalibur.
Last October the companies went to court over the oil fields in Kurdistan, with Excalibur claiming 30% of the company’s oilfield assets in Kurdistan.
Excalibur, a two-man company which said it helped introduce Gulf Keystone to Kurdistan opportunities, launched its legal action three years ago. It had claimed the company had a collaboration agreement with Texas Keystone, owned by Gulf Keystone’s chief exectuive Todd Kozen, which would give it a share of any fields won in the country.
But today the English Commercial Court ruled in Gulf Keystone’s favour, dismissing Excalibur’s claims.
“It has accordingly no valid claim against either Texas or Gulf to an interest in that [Shaikan field] or any other PSC [production sharing contract],” said Judge Christopher Clarke.
The courtroom battle had been seen as a potential stumbling block to any takeover of Gulf Keystone, which has been struck by boardroom battles this summer, as the independent looks to bring the Shaikan field online.
“We are very pleased to have achieved the best possible outcome from the point of view of the Company and our shareholders,” said chief executive Todd Kozel.
“We look forward to pursuing the Company’s stated objectives for the future, now that we have the Court’s decision regarding these historical events.
“We understand that the legal process must take its course once a claim has been lodged, but it has been unfortunate that the Company and its shareholders have experienced significant uncertainty and concern over the last two and a half years and that its executives have been engaged in a protracted and costly dispute to protect the position of the Company and its shareholders.
“The Board and management will now focus on progressing the ramp-up in production and development of the Shaikan world class discovery in the Kurdistan Region of Iraq.”
The company is targeting as much as 250,000bopd within the next five years from the field.
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