By John Lee.
Genel Energy has said it that it will continue shipping crude oil from Iraqi Kurdistan, following confirmation from the KRG that it has finally received an initial payment from Baghdad.
Despite Iraq’s finance ministry issuing an initial payment early last week, by Friday the funds had still not landed in the KRG account, prompting Genel to say it would halt exports if the money did not arrive soon.
But a KRG spokesman confirmed on Monday that the first installment of 650 billion Iraqi dinars ($559 million) had been received.
Genel Energy President Mehmet Sepil (pictured) told Reuters “we won’t cut exports now … The KRG will reconcile [the payments] with all the contractors, and then we will get paid“.
The KRG spokesman said a second payment of 350 billion Iraqi dinars was expected soon, adding, “We trust there will not be the same delays with the second tranche“.
According to the report from Reuters, exports from Kurdistan have risen to 170,000 bpd, and the fields of Taq Taq and Tawke, where London-listed explorer Genel Energy has a stake, are contributing about 110,000 bpd.