In payment drought, oil companies pare KRG investment
Exports through the KRG's politically troubled pipeline have not yielded regular payments, so producers are pinning revenue hopes on the crowded local market.
The Taq Taq-Khurmala Oil Pipeline being installed, Oct. 24, 2012. (KAMARAN NAJM/Metrography/Iraq Oil Report)
ERBIL - Iraq's autonomous Kurdistan Regional Government (KRG) has not paid its oil contractors since November, highlighting political and financial problems that could hamper plans to increase production and exports.
“We’re not going to be in a position to invest until we are able to receive more in payments,” said Bijan Mossavar Rahmani, the Executive Chairman of Norway's DNO, in a Feb. 5 presentation to investors. “Companies expect and were promised payment. And without payment they’re not in a position to continue spending.”
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