Dubai: The government of Iraqi Kurdistan is close to resuming regular monthly payments to international oil companies as the rally in crude prices replenishes the region’s depleted treasury, according to people familiar with the matter.
It’s almost seven weeks since Genel Energy Plc, Gulf Keystone Petroleum Ltd and DNO ASA received their last payment from the Kurdistan Regional Government, which was for oil sold in September. The companies and the regional authorities have now agreed on a new monthly payment schedule, said two people familiar with the matter, who asked not to be identified because the information isn’t public. At least one company has been told to expect a payment on Monday, two other people said.
“We have an ongoing dialogue with the KRG, and they have recently reconfirmed their commitment to paying contractors,” Genel said in an e-mailed statement, without commenting on when it expected to receive the next payment. “We are confident that we will receive payments for oil exported from the Kurdistan Region of Iraq regularly, on a monthly basis, throughout 2017.”
The KRG has struggled to keep up regular payments to the international contractors as it contended with low crude prices, a dispute over revenue sharing with the federal government in Baghdad. Gulf Keystone maintains “a constructive dialogue” with the KRG’s Ministry of Natural Resources, the company’s Chief Financial Officer Sami Zouari (pictured) said by e-mail.
The company, which operates the Shaikan field, is owed money for oil sales from October, November and December. “We are confident these will be paid,” he said.
