Ex-Defence Chief To Quit Gulf Keystone Board

A former chief of Britain's Defence Staff and adviser to Tony Blair during his premiership is to step down as a director of Gulf Keystone Petroleum, the latest in a string of boardroom changes at the company.

Sky News has learnt that Lord Guthrie, who has sat on the Kurdistan-focused oil explorer for just under four years, has decided not to stand for re-election at next month's annual meeting.

Lord Guthrie's departure from the board will come just weeks after Gulf Keystone attempted to draw a line under persistent rows with leading shareholders over its leadership by naming Jon Ferrier, a former Maersk Oil executive, as its new boss.

A member of the British Army between 1957 and 2001, Lord Guthrie has since gone on to serve on the boards of several companies, including NM Rothschild, the investment bank, and Petropavlosk, the mining group.

His decision not to put himself up for re-election at Gulf Keystone's AGM in Paris means that the company will have severed its final boardroom link with the era of Todd Kozel, its controversial former chief executive.

Lord Guthrie's exit also comes as Gulf Keystone, which moved from London's junior AIM market to the main list last year, also searches for a new chairman, following the departure of Simon Murray in March amid renewed shareholder pressure.

While it has met a target of producing 40,000 barrels of oil per day, it has been hurt - like rivals such as Afren - by delays to export payments from the Kurdistan Regional Government, triggering a £30m fundraising from the sale of new shares two months ago.

Gulf Keystone has also been holding talks with prospective buyers of its assets or the whole company.

Payments to oil exporters have faced protracted delays as the Kurdistan Regional Government (KRG) has been distracted by ongoing unrest in Iraq and the need to devote resources to countering incursions by Islamic State insurgents.

Although Gulf Keystone and other foreign oil companies have begun to receive some multimillion dollar payments, the company's indebtedness has left it confronting a financial crunch.

It is said to remain in tentative takeover and asset-sale discussions with a number of parties, although sources expressed scepticism that they would lead to a deal.

Mr Kozel finally stepped down from the role last year following hints of a further shareholder revolt, although his exit has been accompanied by those of a number of independent board members elected as part of the 2013 peace deal.

Shares in Gulf Keystone have slumped by more than 55% during the last 12 months, valuing it at just £340m, while it continues to carry debts of nearly £400m.

Gulf Keystone declined to comment on Sunday.