The KRG said that the changes comes as a result of ongoing challenges presented by the COVID-19 pandemic in Iraq
Previously, the KRG began paying oil producers 50% of the incremental revenue in any month in which the Brent oil price exceeded US$50 per barrel, as a method of repaying arrears.
It is now intending to instead pay 20% of those incremental revenues. The KRG added that it will apply the change from March invoices onwards and payments will be made within 60 days of invoicing. Also, it added that it may re-evaluate the payment model if markets see substantial volatility.
Genel, in a stock market statement, said: “The proposal has not been discussed with, or accepted by, Genel, and we look forward to discussing it with the KRG shortly.”
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