KRG Desperately Needs Kirkuk Oil To Make Payment Obligations

Crude oil production in Iraqi Kurdistan sank 15% to 484,300 b/d in August due to the effects of the 31 July Islamic State attack on the 170,000 b/d Bai Hasan field. As a result, the recent agreement with Baghdad to resume exports from the disputed Kirkuk field will provide a much needed boost to government coffers in September.

The state of Kurdistan Regional Government (KRG) finances is again becoming a major issue for IOCs operating in the country. The latest figures by the Ministry of Natural Resources (MNR) show that after making payments to IOCs, the KRG’s total net income fell by $40mn to $350mn in August. Yet payments made in August were only for June production, and even these were incomplete, with $8mn still missing for the DNO-operated Tawke field. (CONTINUED - 930 WORDS)