The Kurdish Crush

The Kurdistan producers are in a tough spot brought about by COVID-19 and the collapse in oil prices. Earlier this year, the KRG said it would delay payments in respect of October 2019 to February 2020 deliveries as its cash to pay producers was stuck in a Lebanese bank account with the bank itself facing liquidity issues. The KRG had struck a deal to pay producers for the backlog later in 2020. Payments in respect sales from March 2020 were...

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Kurdistan steps up efforts to eliminate gas flaring

The Kurdistan Ministry of Natural Resources ("MNR") has asked the Shaikan field partners (Gulf Keystone and MOL) to re-submit a revised FDP for the field to address additional MNR requests on gas management. The next well planned on the field will now be used to assess the feasibility of gas reinjection into the Jurassic formation, rather than as an originally planned Jurassic production well. Whilst a key driver to be reservoir management and...

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All Tawke on Peshkabir: Is Tawke production declining?

The Tawke PSC encompasses the Tawke and Peshkabir fields. In 2017, operator DNO commenced production at Peshkabir and in 2018, drilled the Peshkabir-4 and -5 wells taking production up to 30-35mbopd. However, the limited disclosure by DNO means it is difficult to break out the production on the Tawke PSC between the Tawke and Peshkabir fields. Based on various disclosures between DNO and partner Genel, it appears that production at Tawke is declining,...

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Kurdistan E&Ps get paid for January sales

Genel has announced that the Tawke and Taq Taq partners have received payment from the KRG for January oil sales. The Tawke partners (DNO 75% and Genel 25%) have received USD56 million and will also share in a USD13 million overriding payment The Taq Taq partners partners received USD8 million this month The continuing payments by the KRG is constructive for sentiment and critical in bringing interest and investment back into the region. Many E&Ps have held off investing in the country with payments being a big concern. While the continuing...

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Kurdistan players receive payment for November exports

Genel Energy and DNO have received payment from the KRG for November oil sales. DNO received USD54.73 million for crude oil deliveries to the export market from the Tawke. The funds will be shared by DNO and Genel pro-rata to the companies' interests in the licence (75% DNO/25% Genel). Separately, a payment of USD4.7 million was received by DNO, representing 3% of gross Tawke licence revenues during November, as provided for under receivables settlement agreement from August 2017. The Taq Taq partners have received a gross payment of USD11.05...

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Kurdistan payments and new oil sales agreements

Kurdistan producers receive payment for October sales Gulf Keystone signs new oil sales agreement with the KRG DNO has reported a payment of USD54 million for Tawke production from the Kurdistan Regional Government. This is in respect of October oil deliveries. The payment will be shared between the licence partners WHO 75% and Genel 25%. Although there is a lag in payments between production and receipt, this is viewed as normal with October sales invoiced in November and approval by the Government in December with payment the following month....

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Kurdistan producers get paid for September

DNO and Genel Energy have reported receipt of USD54 million from the KRG for September crude sales from the Tawke licence - shared by DNO (USD40.7 million) and Genel (USD13.6 million) in line with the interests in the licence. In addition, a payment of USD10.8 million has been received by Genel and DNO, representing 7.5% of gross Tawke licence revenues during October 2017, as provided for under the receivables settlement agreement. Separately, the Taq Taq field partners have received a payment of $9.7m from the KRG for September oil sales - Genel's...

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Kurdish operators receive July crude export payments

Kurdish operators have announced receipt of oil sales payments from the KRG today towards July exports: DNO has confirmed that the Tawke partners have received USD39.5 million Genel has confirmed that the Taq Taq partners have received and USD10.4 million These payments are in line with recent payments and should be the last under the "old" system (i.e. before the recent change in terms in exchange for settlement fo historical receivables). Payment for August sales should be made in November - these should increase with DNO's greater share in...

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Kurdistan E&Ps have been paid for May shipments

Kurdistan E&Ps have been paid for May shipments. The Tawke partners have confirmed receipt of USD39.6 million. The amounts will be shared pro-rata by DNO (55%) and Genel (25% WI) and comprises USD33.2 million towards May deliveries and USD6.4 million towards past receivables. The Taq Taq partners have received USD12.2 million and will be shared pro-rata by Genel (44% WI) and Addax (36% WI). The payment comprises USD11.1 million towards May deliveries and USD1.2 million towards past receivables....

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