Gulf Keystone Petrol said it had signed a crude oil sales agreement, on behalf of the Shaikan contractors, with the Kurdistan Regional Government.
Under the agreement, the government would purchase Shaikan crude oil at the monthly average dated Brent oil price minus a total of around $22 per barrel for a quality discount, as well as domestic and international transportation costs.
The discount was based on the same variables contained within other oil sales agreements in the Kurdistan Region of Iraq, Gulf Keystones said.
The agreement is effective from 1 October 2017 until 31 December 2018.
At 2:23pm: (LON:GKP) Gulf Keystone Petroleum share price was +2.7p at 118.3p