Gulf Keystone says Kur­dis­tan autho­rises oil ex­port pay­ment

The Kurdish Globe - - NEWS -

Gulf Keystone Pe­tro­leum (GKP.L) said on Fri­day the Kur­dis­tan Re­gional Govern­ment (KRG) had au­tho­rised a net pay­ment of $12 mil­lion to the com­pany for crude ex­ports.

The trans­ac­tion, which is yet to com­plete, is part of the KRG's strat­egy an­nounced this month to start pay­ing oil com­pa­nies ac­cord­ing to the terms of their con­tracts, in­stead of ad hoc pay­ments it had been mak­ing since last Septem­ber.

GKP said the ex­pected gross $15 mil­lion pay­ment in­cluded $5.8 mil­lion the com­pany was en­ti­tled to for crude oil ex­ports from the Shaikan oil­field in Jan­uary. The re­main­ing $9.2 mil­lion re­lated to the re­pay­ment of ar­rears for pre­vi­ous ex­ports, GKP said.

An­a­lysts at Mirabaud Se- cu­ri­ties said the pay­ment cov­er­ing ar­rears was gen­er­ous in com­par­i­son with pay­ments made to other pro­duc­ers Genel (GENL. L) and DNO (DNO.OL).

"We are pleased to con­tinue re­ceiv­ing reg­u­lar monthly pay­ments for Shaikan crude oil ex­ports in 2016," GKP Chief Ex­ec­u­tive Jon Fer­rier said in a state­ment.

Since last June, the Kurds have ramped up in­de­pen­dent oil sales to more than 600,000 bar­rels per day (bpd), but with a bloated pub­lic pay­roll and de­pressed prices, the re­gion is run­ning a deficit of $380-400 mil­lion per month.

The KRG still owes oil com­pa­nies bil­lions of dol­lars for oil ex­ports.

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