Iraqi Kurdistan says paying $75 mln to Genel, DNO, Gulf Keystone
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By Isabel Coles and Stephen Kalin
ERBIL, Iraq, Sept 7 (Reuters) - Iraq's Kurdistan region said on Monday it had allocated $75 million of revenue from its independent crude sales to oil exporting companies that have gone unpaid for months.
The figure represents just a fraction of what international oil firms in the autonomous region say they are owed, but the promise of regular payments could restore some confidence.
Gulf Keystone Petroleum is to receive $15 million, whilst DNO (Oslo: DNOFUT.OL - news) and TTOPCO -- a joint venture between Genel and Sinopec (HKSE: 0386-OL.HK - news) 's Addax Petroleum -- will each get $30 million, the region's Ministry of Natural Resources said in a statement.
The payments will be wired to the companies' accounts within seven days, it said.
The Kurdistan Regional Government (KRG) has increased its own crude sales since mid-June, cutting allocations to Iraq's state oil marketing firm SOMO in an ongoing tug-of-war over export rights and budget payments.
The dispute has plunged the region into financial crisis compounded by the drop in oil prices.
"Unfortunately, the steep fall in the price of oil means the KRG continues to struggle to cover its minimum financial needs. But it is also recognised that it is unrealistic to expect IOCs (international oil companies) to be able to sustain oil export at current levels without receiving some of their financial dues on a predictable basis," the statement read.
By the end of the second quarter of this year, DNO said the KRG owed it a sum approaching $1 billion. Genel said it was due $378.4 million and Gulf Keystone $238 million for oil sales and other costs.
Shares (Berlin: DI6.BE - news) in DNO jumped 5.6 percent in early trade. Genel was up 4.5 percent and Gulf Keystone rose 1.5 percent after the statement.
"At this critical time for our company and for the entire oil industry in the Kurdistan region, we welcome the announcement of this payment," said Gulf Keystone's CEO Jon Ferrier.
"Gulf Keystone now looks forward to the establishment of regular payments for Shaikan export sales".
Oil exports from fields in Kurdistan as well as the disputed Kirkuk fell by around 44,000 barrels in August due to repeated sabotage of the pipeline to Turkey. (Editing by Jason Neely and Mark Potter)