KRG offers share of oil sales to IOCs
ERBIL, August 4, 2015 – Iraq’s Kurdistan Regional Government (KRG) announced on Monday that it would give some of its revenue derived from crude oil to international oil companies. The move is intended to incentivise oil producers to continue operating in the country.
International oil companies producing in the semi-autonomous region of Kurdistan have continued to invest in crude exports despite not having received payment commensurate to production since May 2014.
The KRG’s Ministry of Natural Resources stated on its website that it would start parceling out money in September on a monthly basis. “Crude oil export is the principal revenue earner for the Kurdistan region. But, it is also recognised that it is difficult for the international oil companies to sustain oil exports at its current levels, let alone increase it as planned, without receiving their financial dues,” the statement read.
Companies such as exploration and production independents Gulf Keystone Petroleum and Turkey-based Genel Energy have welcomed this development after both companies were hit hard by the lack of payments from KRG. Gulf Keystone was forced to halt oil exports in February, and Genel has not been paid for $233 million worth of oil exports to KRG.
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