Genel Energy Receives $16.5M from KRG

Genel Energy announced Tuesday that the Kurdistan Regional Government has paid the company $16.5 million for oil exported through the Kurdistan Region of Iraq-Turkey pipeline.

The news follows Gulf Keystone’s announcement yesterday that a payment of $15 million had been authorized by the KRG to be wired to Gulf’s account during the next seven days. On August 27, 2015, The KRG’s Ministry of Natural Resources stated that the Kurdistan Regional Council for Oil & Gas Affairs had approved the allocation of $75-$100 million of the revenue from the KRG’s direct crude oil sales as payment for exporting international oil companies. Gulf Keystone was owed $283 million as of June 30, 2015 and Genel Energy was owed $233 million on March 5, 2015.

Murat Özgül, CEO of Genel, commented in a company statement:

“This payment is confirmation of the KRG’s commitment, reiterated twice in August, to pay contractors for oil exports, and we look forward to the normalization of oil export payments in coming months. Regular payments would allow us to plan for continued investment in our KRI oil and gas assets, which have the potential to create significant further value for the Kurdistan Region of Iraq.”

Commenting on KRG’s payment, Gulf Keystone CEO Jon Ferrier said in a company release:

"At this critical time for our company and for the entire oil industry in the Kurdistan Region, we welcome the announcement of this payment of $15 million gross for Shaikan export oil sales and we appreciate the support from our partner, the Kurdistan Regional Government."

The MNR had previously stated on August 3, 2015 that producing IOCs would be paid a portion of the revenue from direct crude oil sales, on a monthly basis, from September 2015 onwards. In a statement on August 27, 2015 the MNR said that as oil export rises in early 2016, the KRG envisaged “making additional revenue available to the exporting IOCs to enable them to begin to catch up on the past receivables due under their production sharing contracts”.


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