Companies from United Arab Emirates have faced some problems about the payments for the fuels that they have supplied to the power stations of Kurdistan which is responsible for maintaining a good electricity supply to all the people of the country.
KRG received the first installment of about $559 million from their oil export in early October and it could solve the problem about the payments.
Rashid al-Jarwan, CEO of Dana Gas said that they are working with KRG and they are also encouraged by the recent statement made by Federal Government on the resumption of payments.
At the end of the year 2011, Dana Gas said that the trade receivable was 1.74 billion dirham of which Egypt owned 48 percent share and Kurdistan owned 52 percent share.
According to the Thomas Reuters data, the 20 percent of Dana gas is owned by Crescent and Dana Gas also was owed 729 million dirham by Egypt for unpaid fuel bills.
Despite the payment issues, the companies did not stop supplying to Kurdistan. In fact they have increased the supplies to many power stations of Kurdistan from 70,000 barrels of oil per day in august to 80,000 barrels of oil in mid October.
The natural gas production has improved in four years. It has reached 340 million cubic feet a day where the production was 330 million cubic feet in early august.
Majid Jafar, CEO of Crescent Petroleum and Dana Gas said that on the next part of development and ant expansion, they are working with the KRG. They also added that 13 million barrels of condensate and 279 billion of cubic feet of gas have been produced by the Khor Mor field in Kurdistan since the start of production in October 2008.
Source [Reuters]