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.

A graduate in journalism from Cardiff University, Andreas has eight years of experience as a business journalist. Email Andreas at andreas.exarheas@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Andreas Exarheas
Assistant European Editor | Rigzone
 -  All Six People Aboard Fatal Angolan He... (Sep 28)
 -  Brent to Stay Below $50 in 2016 (Sep 28)
 -  More Than 350 Oil Service Workers Laid... (Sep 28)
 -  UKCS In Urgent Need of Fresh Investmen... (Sep 27)
 -  Condor Commences Commercial Oil Produc... (Sep 27)


Most Popular Articles

From the Career Center
Jobs that may interest you
Contract Transfer Reviewer/ Approver (Land/Lease Contracts)
Expertise: Landman|Lease Analyst
Location: Houston, TX
 
Quality Assurance Manager
Expertise: QA / QC / Inspection|Regulatory Compliance|Reliability Engineer
Location: Philadelphia, PA
 
Structural Dept. Craft Mgr.
Expertise: Engineering Manager|Marine Engineering|Structural Engineering
Location: Philadelphia, PA
 
search for more jobs

Brent Crude Oil : $49.24/BBL 1.12%
Light Crude Oil : $47.83/BBL 1.65%
Natural Gas : $2.959/MMBtu 0.23%
Updated in last 24 hours