I’ve been trying to follow the money the KRG have been paying back GKP to reduce the Back Costs since the present R-Factor came into being.
In the 2016 & 2017 Results that was fairly easy and the Debt had been reduced to c.$48m, then in this years 2018 Results GKP changed where they placed the Debt so the amount wasn’t easy to find, but I think I found it and it looked to be down to $32m.
Now the present R-Factor & Oil Payment Deal was extended for a further 2 years when it run out late last year, so by the end present deal the Debt may well be paid off.
However, since the 1st Oil Deal & R-Factor was announced, the KRG still hadn’t been contributing to their shares of the Shaikan ongoing running Costs, so their Costs have been adding to the Debt, so that while (from memory) the KRG originally owed GKP c. $72m it was being added to, which has resulted in the Debt only being slowly paid off.
That is the reason why GKP presently get 80% (78% actual)MOL 20%.
When the Debt is paid off the R-Factor should change again back to its original R-Factor, which should result in GKP getting 58% (net) of Shaikan Profit Oil, which should be circa $7.5-8.25 per barrel as per the original R-Factor.
But, it’s all been going on so long and there’s so much information lost in the mists of time, partly as ii has changed and GKP no longer shows any pre 2016 Presentations, it’s all getting difficult to understand let alone Research with any thoroughness.