Iraqi KRG slightly delays payments to oil firms Genel, Gulf Keystone

LONDON, Dec 12 (Reuters) - Iraq's Kurdistan Regional Government (KRG) has delayed payments to London-listed oil producers Genel and Gulf Keystone Petroleum by a few weeks, the companies said on Thursday.

"Gulf Keystone has been informed by the Kurdistan Regional Government's Ministry of Natural Resources (MNR) that payments relating to invoices for August and September oil production, due in November and December, will be received in January 2020," the firm said.

Genel made an identical statement. Neither added details.

The payments are due to the companies as part of their production sharing contracts with the KRG.

Kurdish officials could not immediately be reached for comment.

Genel, which produces around 37,000 barrels per day net in Kurdistan, started paying dividends of at least $40 million this year and conducted a share buyback programme.

Its shares hit a two-month low on Thursday and were down around 3.7% at 1526 GMT at 178.8 pence. It has been receiving around $30 million a month in 2019 so far from the arrangement.

"Regular payments have been made for over four years and we are confident of both the MNR's ability and willingness to pay, and catch up with payments as stated," a Genel spokesman said.

"This is a temporary issue and one that does not impact our positive view of operating and investing in the Kurdistan Region of Iraq."

Gulf Keystone, which produces just over 30,000 bpd gross in the KRG, also conducted a share buyback programme this year amounting to around $25 million and paid a $25 million dividend.

In October, it said it received a $16.8 million net payment from the KRG for July 2019 oil sales from its Shaikan field. Gulf Keystone shares were set for a 3.5% fall on Thursday.

A spokesman declined to comment further.

Norway's DNO, which also operates in the KRG, has not said whether payments due to it have also been delayed. (Reporting by Shadia Nasralla; Editing by Kirsten Donovan)