Anglo-Turkish firm Genel announced 19 June that it and Tawke operator DNO received payments from the KRG for May oil sales, and the region’s other foreign operators will likely announce receipt shortly. Relatively timely payment is a positive indicator for the government’s ability to maintain payments going forward, with IOCs struggling with inconsistent payments and low oil prices.
The KRG told operators in April it would suspend November-February payments due to its own financial difficulties (MEES, 17 April), and in return make monthly payments on the 15th of the following month – an assurance broken after just one month (MEES, 29 May). This week’s announcement suggests the KRG is back on schedule and has generated enough revenue (at least for now) to settle payments. For the region’s more cash-strapped (and debt-ridden) firms – Canada’s Shamaran chief among them (MEES, 12 June) – the payments offer crucial short-term relief. (CONTINUED - 283 WORDS)