Unpaid Oil Companies "Reconsider Investments"

By John Lee.

Anadolu Agency reports that international oil companies (IOCs) operating in Iraqi Kurdistan are reconsidering their investments as they have not yet been paid by the Kurdistan Regional Government (KRG).

Gulf Keystone Petroleum (GKP) recently suspended crude oil exports by truck from Iraqi Kurdistan, and was reported in November as saying that it was owed about $100 million (116 billion Iraqi dinars).

The article quotes Shwan Zulal, head of the London-based Carduchi Consulting, as saying:

"Small- and medium-sized oil companies are eager to get paid, but the financial situation in the Kurdish region will not allow that to happen any time soon.

"The prospect of significant payments is unlikely any time soon, given the fact that the region is at war with the Islamic State, and so far has not been able to receive their share of oil revenue payments from Baghdad.

"This is combined with low oil prices that are not producing sufficient revenue for Baghdad to make payments."

(Source: Anadolu Agency)

(Oil image via Shutterstock)