Iraq’s Kurdistan Regional Government (KRG) has made new, temporary payment proposals to IOCs aimed at easing its overstretched finances, while ensuring continued cashflow to IOCs. Under the offer, overdue payments for output prior to the recent price collapse will be deferred to 2021, while the KRG has pledged to make more timely payments for output from March. This would immediately cut the KRG’s near-term financial obligations. Talks are ongoing, and if a final deal is reached the terms may differ from the current proposal.
Shaikan operator Gulf Keystone says the KRG proposal it received “proposal is in line with those made to other international oil companies operating in Kurdistan.” Anglo-Turkish firm Genel provided the most detail, announcing on 17 April that it and partner at the 115,000 b/d Tawke license Norway’s DNO have received payments from the KRG for March 2020 oil sales as part of a proposal to suspend four months of back payments “for at least nine months.” (CONTINUED - 392 WORDS)