(Alliance News) - Genel Energy PLC on Friday said it has secured payment from the Kurdistan regional government for oil sales during March.
The oil company said the Taq Taq and Tawke partners - international oil companies operating in the Kurdistan Region of Iraq - have received a gross payment of USD4.6 million and USD34.6 million, respectively.
Genel's net share of those payment was USD2.5 million and USD8.5 million, respectively.
Genel said it has requested clarification regarding the payment mechanism.
Under the Kurdistan regional government's proposals, it commits to settling monthly sales invoices by the fifteenth day of the following month.
In addition, the government said Tawke production override payments will be suspended for at least nine months, but should the oil price recover to USD50 per barrel, a payment programme to recover the deferred invoices will be put in place.
Finally, the government said payment of invoices relating to oil sales from November 2019 to February 2020 will be deferred, interest free, for at least nine months.
Genel said it has responded to the Kurdistan regional government with a proposal that balances the government's near-term liquidity challenges with longer-term developments benefiting both the government and Genel.
The stock was trading 4.9% higher in London on Friday at 108.00 pence a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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Genel Energy (GENL)