6th Jan 2016 07:40
LONDON (Alliance News) - Gulf Keystone Petroleum Ltd on Wednesday said it has received a further payment from the Kurdistan regional government for the oil it exports out of Iraq, whilst fellow regional producer Genel Energy PLC said it had received its second payment in two days.
The news comes a day after Genel announced it had received a payment for the oil exported out of the country via the Iraq-Turkey pipeline. Both companies have received four consecutive monthly payments from the government but are still trying to formalise a more stable payment agreement.
The latest USD15.0 million payment for Gulf Keystone was made on oil exported from the Shaikan field during December, of which USD12.0 million is net to Gulf Keystone. The company reported a cash balance of USD58.4 million following the payment.
In its own statement Wednesday, Genel Energy noted an announcement made by fellow regional producer DNO ASA, a Norwegian company that operates the Tawke field in which Genel holds around a 25% working interest. The gross payment made to all the partners involved in the Tawke field was for USD30.0 million.
The USD30.0 million gross payment received by Genel that was announced on Tuesday, of which USD16.5 million was net to the company, was for oil exported from its other field in the region, Taq Taq.
Although Gulf Keystone and Genel both are receiving payments for oil currently being produced, both companies are owed large sums in backpayments from the government, which at the end of October 2015 owed a total of USD700.0 million to foreign companies operating in the area.
Gulf Keystone 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.
"We are pleased to start 2016 with confirmation of payment for December's Shaikan crude oil export sales. This is the fourth consecutive monthly payment, for which we would like to state our thanks to our partner," the Kurdistan Ministry of Natural Resources, said Gulf Keystone.
By Joshua Warner; [email protected]; @JoshAlliance
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