RE: RNS Questions4 Nov 2021 10:35
HI Boyo.
Have been in touch with IR & they have sent this back.
1. Invoices are submitted around 10 days after the end of the month of production, payment is then within 60 days of that. So 60 days post invoicing is effectively in the third month after production. The KRG has historically always paid on this timeline, which is in line with international standards. The change to being paid a month later than production came as a way of sweetening the pill last April when they were unable to keep up with payments due to the oil price crash and external factors. The reversion to this payment mechanism was therefore expected, although we had hoped that it would have come once a larger amount of the receivables had been repaid. We are encouraged that Sarta production has been added to the receivable recovery mechanism however.
Hope this helps.
ATB