Genel Sees Kurdish Oil Payments as Opportunity for Investment
2015-08-06 10:12:17.852 GMT
By Angelina Rascouet
(Bloomberg) -- Genel Energy Plc, an oil producer in Iraqi
Kurdistan, said it sees increased investment opportunities as
payments from the regional government to explorers are set to
resume next month.
The Kurdistan Regional Government announced on Aug. 3 that
it will start allocating part of revenue from oil exports to
producers on a monthly basis from September to cover their
running expenses, and may make additional revenue available to
the companies to start paying dues for past exports as shipments
rise next year. The announcement prompted a 13 percent surge in
Genel’s shares that day.
“The resumption of regular payments which the KRI has now
promised will allow us to use our very strong balance sheet to
invest in these opportunities,” Ben Monaghan, chief financial
officer at London-based Genel, said in a phone interview
Thursday, referring to the Kurdistan Region of Iraq. Investments
opportunities center on gas and oil assets, he said, without
elaborating.
The semi-autonomous KRG started to bypass Iraq’s central
government and independently sell its crude oil exports amid a
dispute over revenue sharing, it said last month. The country’s
central government previously threatened legal action against
buyers of Kurdish oil. Even after Iraq’s central government
struck a deal with the Kurdish region in December to allow
increased shipments, payment continued to elude producers after
the collapse in oil prices squeezed both governments’ budgets.
“In recent months, the Kurdistan regional government has
shown the ability to monetize large volumes of oil,” Monaghan
said. Genel also said its production hasn’t been affected after
an oil pipeline was bombed by the separatist PKK group earlier
this week. The link has been operational since yesterday and
Genel doesn’t expect regular attacks on oil pipelines in the
region, he said.
Genel shares slid as much as 8.3 percent in London on
Thursday, the most since May 7, after rising for three
consecutive days.
For Related News and Information:
Oil Producers DNO, Genel Surge on Kurdish Exports-Pay Pledge
Top Oil Stories: OTOP <GO>
First Word Oil: NI BFWOIL <GO>
Crude Oil Markets Menu: BOIL <GO>
To contact the reporter on this story:
Angelina Rascouet in London at +44-20-3525-0424 or
arascouet1@bloomberg.net
To contact the editors responsible for this story:
James Herron at +44-20-3525-8705 or
jherron9@bloomberg.net
John Deane, Fred Pals
2015-08-06 10:12:17.852 GMT
By Angelina Rascouet
(Bloomberg) -- Genel Energy Plc, an oil producer in Iraqi
Kurdistan, said it sees increased investment opportunities as
payments from the regional government to explorers are set to
resume next month.
The Kurdistan Regional Government announced on Aug. 3 that
it will start allocating part of revenue from oil exports to
producers on a monthly basis from September to cover their
running expenses, and may make additional revenue available to
the companies to start paying dues for past exports as shipments
rise next year. The announcement prompted a 13 percent surge in
Genel’s shares that day.
“The resumption of regular payments which the KRI has now
promised will allow us to use our very strong balance sheet to
invest in these opportunities,” Ben Monaghan, chief financial
officer at London-based Genel, said in a phone interview
Thursday, referring to the Kurdistan Region of Iraq. Investments
opportunities center on gas and oil assets, he said, without
elaborating.
The semi-autonomous KRG started to bypass Iraq’s central
government and independently sell its crude oil exports amid a
dispute over revenue sharing, it said last month. The country’s
central government previously threatened legal action against
buyers of Kurdish oil. Even after Iraq’s central government
struck a deal with the Kurdish region in December to allow
increased shipments, payment continued to elude producers after
the collapse in oil prices squeezed both governments’ budgets.
“In recent months, the Kurdistan regional government has
shown the ability to monetize large volumes of oil,” Monaghan
said. Genel also said its production hasn’t been affected after
an oil pipeline was bombed by the separatist PKK group earlier
this week. The link has been operational since yesterday and
Genel doesn’t expect regular attacks on oil pipelines in the
region, he said.
Genel shares slid as much as 8.3 percent in London on
Thursday, the most since May 7, after rising for three
consecutive days.
For Related News and Information:
Oil Producers DNO, Genel Surge on Kurdish Exports-Pay Pledge
Top Oil Stories: OTOP <GO>
First Word Oil: NI BFWOIL <GO>
Crude Oil Markets Menu: BOIL <GO>
To contact the reporter on this story:
Angelina Rascouet in London at +44-20-3525-0424 or
arascouet1@bloomberg.net
To contact the editors responsible for this story:
James Herron at +44-20-3525-8705 or
jherron9@bloomberg.net
John Deane, Fred Pals