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Krg To Pay Us$100 Million To Foreign Oil Companies In September

Genel Energy to increase by 17 per cent higher and Gulf Keystone Petroleum was up 7 per cen

Kurdistan Regional Government announced that they will start making regular payments to oil-exporting companies in September, sending shares in those firms up as high as 17 per cent..

The Kurdish Ministry of Natural Resources said in a statement that Dh275-367 million (approx $75-$100 million) of revenue from its crude oil sales would be allocated as payment, causing shares in Genel Energy to increase by 17 per cent higher, Gulf Keystone Petroleum was up 7 per cent, and Norway’s DNO 10 per cent after the statement.

“Regular payments will allow the exporting companies to cover their ongoing expenses and plan for further investment in the oilfields, which will in turn boost production,” the statement read.

“As oil export rises in early 2016, the KRG [Kurdistan Regional Government] envisages making additional revenue available to the exporting IOCs [international oil companies] to enable them to begin to catch up on the past receivables due under their production-sharing contracts.” Oil producers across the globe are trying to deal with the financial fallout of a sharp decline in crude prices since last year’s peak in June.

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