Genel, DNO, Gulf Keystone Receive KRG Payments

Genel Energy plc and DNO ASA revealed Tuesday that the Tawke field partners have received a gross payment of $16.87 million from the Kurdistan Regional Government for March crude oil deliveries from the Tawke field in the Kurdistan Region of Iraq.

An additional $3.24 million gross payment was also made towards the recovery of outstanding entitlements for past deliveries. The payments will be shared pro-rata by DNO and Genel.

Tawke field deliveries for export in March averaged 74,546 barrels of oil per day (bopd), up from an average of 66,427 bopd in February. Export deliveries in March were impacted by the extended closure of the Turkish segment of the export pipeline during the first half of the month. Tawke deliveries to the local market in March averaged 4,446 bopd, down from 6,697 bopd a month earlier. During April to date, Tawke deliveries for export have averaged 117,256 bopd.

April production for Tawke is “stronger” than forecasted for the average of the second quarter of 2016, according to a research note from FirstEnergy, which also stated that production in March was “very low compared to the 1Q16 average but this was expected given the pipeline issues”.

In addition to the Tawke payments, the KRG paid Gulf Keystone Petroleum Ltd $15 million for Shaikan crude oil exports in March 2016.

The payment, which follows the bilateral agreement between Gulf Keystone and the KRG's Ministry of Natural Resources on March 16, comprises the company's monthly contractual revenue entitlement under the Shaikan Production Sharing Contract for crude oil exports in March 2016 of $5.5 million gross ($4.3 million net to Gulf Keystone), $0.6 million gross ($0.4 million net) towards the recovery of outstanding entitlements for past deliveries and $8.9 million towards the recovery of Gulf Keystone's past costs associated with the Shaikan Government Participation Option.

Following receipt of the payment, Gulf’s current cash position is $69.5 million.


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