IOCs Stall KRG Investment On Renewed Payment Concerns

The KRG this week resumed payments to IOCs on the back of output gains – but two months late. Delays have already led investment plans to be pushed back: production will suffer as a result.

Anticipating an oil export boost for September, northern Iraq’s Kurdistan Regional Government (KRG) this week made its first payments to IOCs in nearly 50 days. But Erbil is not out of the woods yet and firms will need further reassurances before resuming delayed investment plans in the region.

Anglo-Turkish firm Genel announced on 28 September it had received full payment as invoiced for Taq Taq’s July production. Gross payment was $23.37mn – down 6% on June – of which Genel received $12.85mn and partner Sinopec received $10.52mn.

London-listed Gulf Keystone (GKP) announced receipt of $50mn for June Shaikan output on 29 September. But August payments remain outstanding for both and other firms require payments for July, and even June in some cases. (CONTINUED - 1330 WORDS)

DATA INSIDE THIS ARTICLE

table KRG 'Monthly' Payments Timings
table DNO Capital Expenditure