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)