26th May 2016 14:58
LONDON (Alliance News) - Genel Energy PLC on Thursday said it has received USD6.1 million from the Kurdistan regional government in partial payment for the oil that was sold into the domestic market in April from the company's Taq Taq field in Kurdistan.
In total, the government paid USD11.0 million to Taq Taq partners for the oil sales in April, reflecting a part settlement of the USD22.5 million invoiced amount for April Taq Taq oil sales.
This incorporates USD18.8 million towards contractor monthly entitlement and USD3.7 million for previous sales made from the field, as the regional government has started to pay down the considerable sum it owes to foreign oil producers in the region for previous oil production and sales.
Genel said the balance of the April 2016 invoice is expected to be paid shortly.
Gross oil sales from the Taq Taq field in April 2016 averaged at 67,405 barrels of oil per say, and the average brent oil price applicable was USD41.48 per barrel, Genel said, noting that a USD5 per barrel discount was applied to the oil, for transportation and handling costs.
Following lengthy negotiations, the Kurdistan regional government released a statement at the start of February confirming it intends to pay foreign oil producers for the oil exported out of the country via the Iraq-Turkey pipeline, giving Genel and other foreign oil producers in the area such as Gulf Keystone Petroleum PLC more confidence that payments from the regional government were becoming consistent.
Shares in Genel were up 4.5% at 132.75 pence on Thursday.
By Hannah Boland; [email protected]; @Hannaheboland
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