Genel Energy PLC (LON:GENL) said it has received notice from the Kurdistan Regional Government (KRG) that override payments, whereby the company receives 4.5% of monthly Tawke gross field revenues, will resume with the January 2021 invoice, to be paid in February 2021.
Assuming the prevailing oil price, this translates into over $5mln of additional cash proceeds on a monthly basis, the group said.
Genel pointed out that this is consistent with the communication received from the KRG, as announced on April 17, 2020, which stated that the override payments would be suspended for at least nine months, and also that in a scenario where the oil price recovers to around $50 per barrel, a review of the situation would take place immediately in respect of the outstanding receivable.
In line with this communication, the group said the KRG has now also submitted a reconciliation model for repayment of the receivable relating to amounts owed for invoices for oil sales from November 2019 to February 2020 and the suspended override from March to December 2020.
The company said it will work through the submission and update the market when appropriate, as further discussions with the KRG take place.