11th Apr 2016 13:34
LONDON (Alliance News) - Genel Energy PLC on Monday said it had received another payment from the Kurdistan regional government for the oil that was sold into the domestic market during March from the company's Taq Taq field.
A gross payment of USD19.9 million has been made to the partners involved in the Taq Taq field, of which USD10.9 million is attributable to Genel.
That payment covers the oil sold into the local market and the oil sent to the Bazian refinery during March, with gross oil sales from Taq Taq amounting to 75,300 barrels of oil equivalent per day during that month.
Importantly, an additional payment of USD3.9 million has been made to the partners on the field 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.
Of that backpayment, USD2.2 million is net to Genel, meaning the London-listed firm received a total of USD13.1 million for the month of March.
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.
Genel is owed a hefty sum from the regional government for previous oil production and sales, and has been securing regular monthly payments for ongoing sales and production since September last year, with the regional government making its first backpayment in January.
Genel is owed somewhere in the region of USD400.0 million from the regional government.
Genel shares were up 2.4% to 90.36 pence per share on Monday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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