Genel Energy PLC (LON:GENL) relayed to investors proposed amendments to the repayment schedule for monies owed by the Kurdistan regional government (KRG) for oil sales from November 2019 to February 2020 and the suspended override from March to December 2020.
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.”