5th Jan 2016 15:00
LONDON (Alliance News) - Genel Energy PLC Tuesday said it has received a fourth consecutive monthly payment from the Kurdistan regional government for the oil it exports from Iraq.
The regional government have made a gross payment to Genel and its partner of USD30.0 million for the oil exported out of the country via the Iraq-Turkey pipeline, with Genel's share being USD16.5 million.
Payments from the regional government are an ongoing issue for producers in the area, with Genel and other London-listed producer Gulf Keystone Petroleum Ltd both owed large amounts from authorities for oil it has previously exported.
Genel's production in the country comes from its interest in the Taq Taq field.
Both companies are trying to negotiate a more stable and formal agreement with the regional government over payments, but Genel has now received four consecutive monthly payments from the Kurdistan government suggesting that payments are becoming more consistent.
Back in October, Genel was owed around USD400.0 million in backpayments from the regional government, which at that time owed a total of around USD700.0 million to foreign companies operating in the region.
Gulf Keystone, which also has been receiving regular payments over the last few months, previously said the regional government vowed the arrears owed to Gulf Keystone would be "considered for payment" sometime in 2016, suggesting Genel also could be set to secure payments of arrears this year.
Genel shares were down 1.4% to 171.50 pence per share on Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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