Kurds make payments for oil exports

Export payments by Kurdistan Regional Government becoming commonplace.
By Daniel J. Graeber  |  Jan. 6, 2016 at 6:24 AM
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ERBIL, Iraq, Jan. 6 (UPI) -- Energy companies working in the Kurdish north of Iraq said they've received payments from the regional government for crude oil exports.

Norwegian energy company DNO International confirmed it received $30 million in what it said was a partial payment for oil exported from the Tawke field in the Kurdish north of Iraq. It would share a portion of the payment with Genel Energy, a partner led by former BP boss Tony Hayward.

For DNO, it's the fourth regular monthly payment made by the Kurdish government since September.

The Kurdish government agreed in August to allocate some of its export revenue to international oil companies on a monthly basis in order to help cover the cost of operating expenses. The Kurdish north hosts some of the larger oil fields in Iraq and while the Kurdish government said crude oil exports are its principle source of revenue, it said it recognized energy companies operating in the region face difficulties moving forward without their share.

Gulf Keystone Petroleum, which operates the Shaikan oil field in the Kurdish north, said it received a gross payment of $15 billion for exports for December.

"We are pleased to start 2016 with confirmation of payment for December's Shaikan crude oil export sales," CEO Jon Ferrier said in a statement.

The January payment is the fourth for Gulf Keystone Petroleum.

The semiautonomous Kurdistan Regional Government started independent oil sales in June, averaging earnings of around $682 million per month. Total preliminary crude oil production from the Kurdish north for November, the last full month for which data are available, was estimated at 19 million barrels.

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