(MENAFN- ProactiveInvestors) The picture is getting clearer for oil producers in the Kurdistan region of northern Iraq where independent exports will reportedly continue.
A one year deal unveiled on Tuesday set out agreed terms for exports sales from the semi-autonomous region where in recent years the dispute over oil has been a major challenge to relations with Baghdad.
It means 550000 barrels of Kurdistan produced oil will be sold per day handled by Baghdad’s oil marketing organisation SOMO.
More recent reports from Kurdistan indicate the semi-autonomous region will also be able to sell more oil beyond the 550000 barrels handled by SOMO.
Comments from Qubad Talabani deputy prime minister of the Kurdistan Regional Government on an official website claimed the region could still export and make direct oil sales in excess of the agreed 550000 bopd in Tuesday’s deal.
London quoted oil companies earlier this week got a boost receiving payments for previously exported crude.
() told investors it was set for US$24mln of payments for pipelined exports of oil from its Taq Taq and Tawke fields.
In a stock market statement Genel said the payments are an important first step towards the normalisation of payments for oil exported via the pipeline.
"Payments are expected to become more regular and predictable once the KRG reaches budget equilibrium in early 2015" the company added.
It also said that Kurdistan oil exports via the pipeline continue to grow and volumes recently exceeded 350000 barrels per day. Genel owns a 44% interest in the Taq Taq field and 25% of Tawke.
Separately Gulf Keystone Petroleum () which trucks its export crude out of Kurdistan told investors it has received a US$15mln for crude oil exports from the Kurdistan region of northern Iraq.
The company said it now looks forward to establishing a pattern of regular payments for export crude sales though in the meantime it will continue to take a prudent approach to capital expenditure.
Breakthroughs in Kurdistan this week represent long awaited and significant milestones for oil companies active in the region. But for weak oil prices which have stymied investor interest in the broader sector the news would have been much more of a catalysts for the respective share prices.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.