Genel gets additional $16million for Tawke field

Iraq news
Iraq’s semi-autonomous Kurdistan Regional Government plans to start making its first regular payments to oil producers including DNO ASA, Genel Energy Plc. and Gulf Keystone Petroleum Ltd. within seven days. The companies’ shares rallied. The Ministry of Natural Resources authorized the allocation of $75 million of revenue from the KRG’s direct sale of crude oil as payments, the ministry said in an e-mailed statement on Monday. Operators of the Taq Taq oil field including Genel Energy will receive $30 million, Tawke field operator DNO will get $30 million and Gulf Keystone, the operator at Sheikhan, will receive $15 million over the next seven days, it said. “Regular payments will be needed to allow the exporting companies to cover their ongoing expenses and plan for further investment in the oil fields, which will in turn boost production and thus help the people of the Kurdistan region,” according to the ministry statement. Additional payments will be made as Kurdish shipments rise in 2016, it said. The payments would be the first schedule compensation to companies that have been caught for years in a dispute over revenue sharing between authorities in the northern Kurdish enclave and Iraq’s federal government. Genel’s shares gained 6.1% percent, while DNO and Gulf Keystone Petroleum also rallied.

Genel Energy today confirmed the Kurdistan Regional Government paid its outstanding $16.3million in relation to the Tawke field.

The payment to the Tawke partners follows $16million paid on May 27.

A Genel Energy spokesperson said: “The payment completes settlement of the invoiced amount of $32.3million for April 2016 Tawke oil sales, an amount that incorporates $27.1million towards contractor monthly entitlement and $5.2million towards recovery of historical receivables.”

The payment will be shared pro-rata by DNO and Genel.

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