(Reuters) - Gulf Keystone Petroleum Ltd (L:GKP), a foreign oil producer in Iraqi Kurdistan, is exploring a potential sale amid lengthy talks with the Kurdistan Regional Government over delayed payments for oil exports, the company is set to disclose on Wednesday, according to Sky News.
The oil company is working with Deutsche Bank (XETRA:DBKGn) as its financial adviser as it weighs strategic alternatives, the report said, citing sources. (http://bit.ly/1afU3bQ)
The Sky News report, however, did not identify any potential suitors or partners for the British oil producer that earlier had said it was taking a "prudent approach" with capital expenditure in 2015 and that its board was considering a number of long-term financing options.
"A sale of Gulf Keystone is by no means certain, although it is likely to attract interest from possible buyers including rival oil explorers in the region," Sky News said.
Oil producers across the globe are trying to deal with the financial consequences of a sharp decline in oil prices since last year's peak in June.
Earlier this month, Gulf Keystone and its partner MOL PLC (BU:MOLB) said they had suspended all trucked exports of crude from the Shaikan oilfield in Northern Iraq.
The Kurdish Regional Government owes the region's oil companies months' worth of oil export payments. It has been catching up on such outlays since Iraq's central government reinstated budget allocations to the autonomous authority late last year.
Representatives for Gulf Keystone, which has a market value of 316.72 million pounds ($489.90 million) as of Tuesday's close, could not be reached for comment.