KRG: Prompt March Payments Boost IOC Outlook

IRAQ’S Kurdistan Regional Government (KRG) has completed payments to IOCs for March crude oil sales. Buoyed by hefty prepayments and a $150mn loan from Turkey it has shrugged off the impact of 10 days of pipeline-outage in March, with payments rising in value and completed in a timelier manner.

For the first time since the new payment plan was announced in January, payments for the Tawke, Taq Taq and Shaikan fields were all made within the mandated 10-working day timeframe. Overall payments increased to $58.9mn, the highest since the previous flat-rate payment system concluded (see table).

The largest rise was at Gulf Keystone’s (GKP) Shaikan field. Payment doubled to $15mn thanks to $8.9mn for “past costs associated with the Shaikan Government Participation Option,” designed to top-up Shaikan payments to the previous $15mn level, in recognition of GKP’s particular financial pressures (see below). (CONTINUED - 753 WORDS)


table KRG ‘Monthly’ Payments Timings
chart Gulf Keystone Cash Reserves, Share Price Still Depressed Despite Latest KRG Payment
chart Tawke, Taq Taq, Shaikan Output Recovers ('000 B/D)