KRG Oil Payments Boost, Output Down

Key local producers DNO and Genel Energy this week each received $30mn receivables payments from the KRG on behalf of the Tawke and Taq Taq consortiums they lead. Following last week’s $15mn payment to Shaikan operator Gulf Keystone (MEES, 16 October), this brings total October payments to $75mn, the same as for September (MEES, 11 September). London-listed Genel, with a 25% minority stake in Tawke as well as 44% of Taq Taq pockets $24.5mn for October; Norway’s DNO (55% of Tawke) $22mn, and Sinopec (36% of Taq Taq) $13.5mn. (The payments split excludes the KRG’s 20% stake in each consortium).

But, with payments still apparently ad-hoc, it remains to be seen if this will prove enough to spur increased investment from the KRG’s key producers. Genel calls the payments a “turning point” but stops short of committing to hiking investment: for this “predictable export payments in line with the PSC entitlements” are needed; and even $30mn/month is way below what Genel reckons it is entitled to.


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