- International oil companies produced 300,000 barrels a day over the first half of the year without receiving payment
- Analysts say companies are owed more than $1bn by Kurdistan Regional Government
- International oil companies working in region will begin receiving monthly payments in September
Iraqs Kurdistan Regional Government (KRG) is planning to pay a share of its oil sales to producers, according to a statement made on 3 August.
International oil companies (IOCs) working in the Kurdish region of northern Iraq will begin receiving monthly payments in September..
The statement indicated that the government is likely to continue independent oil sales, which it increased dramatically over recent weeks as it diverted oil away from Iraqs State Oil Marketing Company (Somo).
The federal government has to date been unable to provide the Kurdistan region with its monthly budgetary dues, the KRGs statement said. As a result, the KRG has been obliged to introduce direct crude oil sales.
Shares in IOCs active in the Kurdish region of northern Iraq rose on the back of the statement.
Companies including Turkey-headquartered Genel Energy and Norways DNO pumped about 300,000 barrels a day (b/d) of oil over the first half of the year without being paid for exports.
Analysts say they are owed more than $1bn by the semi-autonomous regional government.