Iraqi Kurdistan Pays $75 Million to IOCs

By Simon Kent.

The Kurdish Regional Government (KRG) has released a statement saying it has put aside $75 million to pay three IOCs, Genel Energy, DNO and Gulf Keystone.

The announcement follows payment disruption to the IOCs from the ongoing Baghdad–Erbil revenues and exports dispute. Additionally, the KRG has pledged regular payments, welcome news to the IOCs in the region, but almost certainly inflammatory for Baghdad-Erbil relations, which have affected coordination against ISIS.

According to the Ministry of Natural Resources–a ministry of the autonomous government– the money will arrive within 7 days. In June, the KRG cut oil allocations to Iraq’s State Oil Marketing Company (SOMO) and each side has repeatedly accused the other of not keeping to a bargain made in November last year.

KRG independent exports now stand at 472,832 bpd, a drop of 44,000 due to a pipeline sabotage attack.

According to Reuters, shares in Norway’s DNO jumped 5.6 percent, Genel was up 4.5 percent and Gulf Keystone rose 1.5 percent, following the announcement.

(Source: Reuters)

10 Responses to Iraqi Kurdistan Pays $75 Million to IOCs