KRG Cash Pledge Boosts Foreign Operators

Gulf Keystone and Genel Energy, operators of two key oil producing assets in the Kurdistan region of Iraq, have both welcomed a proposal by Erbil to start paying their costs out of proceeds from independent oil exports. But the foreign oil companies are holding off further investments while they await payment of billions of dollars they are owed by the Kurdistan Regional Government (KRG).

Gulf Keystone Petroleum (GKP) has pushed back plans to raise capacity to 100,000 b/d from its flagship Shaikan oil field in the Kurdistan region and is holding output at around 40,000 b/d while it awaits payment for $100mn it says it is owed for past oil sales. (CONTINUED - 946 WORDS)