Gulf Keystone Petroleum Ltd pledges US$25mln special dividend but shares dip as

 () announced it will pay a US$25mln special dividend to supplement its proposed annual dividend payment, though the good news was dampened by changes to the repayment terms for past oil sales in Kurdistan.

The company, in a statement, said it intends to seek shareholder approval for the dividend at its AGM on June 18, and, it would see total dividends for the year of US$50mln.

“Given continuing strong oil prices, improving macroeconomic conditions and our robust financial position, we are pleased to deliver on our commitment to consider further shareholder distributions,” said Jon Harris, Gulf Keystone chief executive.

“We will continue to balance investment in growth and returns to shareholders as we develop and realise value from the Shaikan Field for the benefit of all stakeholders.”

At the same time the company relayed to investors changes to the repayment schedule for monies owed by the Kurdistan regional government (KRG) for past oil sales.

Previously, the KRG began paying oil producers 50% of the incremental revenue in any month in which the Brent oil price exceeded US$50 per barrel, as a method of repaying arrears.

It is now intending to instead pay 20% of those incremental revenues. The KRG added that it will apply the change from March invoices onwards and payments will be made within 60 days of invoicing. Also, it added that it may re-evaluate the payment model if markets see substantial volatility.

In London, GKP shares opened 2.7% lower at 168.6p.