Kurdistan allocates $ 100 million as receivables of oil companies

in an apparent attempt to reassure foreign oil companies operating in the semi-autonomous region.

The Ministry of Natural Resources in the region said in a statement that 75 to 100 million dollars of direct crude oil sales revenues will be allocated as payments under the accounts of the companies.

The region has increased its independent sales since mid-June, while reduced the allocations of the Iraqi Oil Marketing Company (SOMO) in an escalation of the dispute over export rights and the budget’s payments caused the non-payment of companies’ dues.

The statement said that "regular payments will allow exporting companies to cover ongoing expenses and plan for more investment in oil fields, thus enhancing the production."

The statement added that "with the increase in oil exports at the beginning of 2016 , Kurdistan Regional Government expects to provide additional revenues for international oil companies to be able to start getting previous entitlements under production sharing contracts with them."

Gulf Keystone Petroleum Corporation said on Thursday that Kurdistan Regional Government owes it , $ 283 million for oil sales and other costs.

June was the first month that witnessed large independent sales since last December when the region reached an agreement with Baghdad for the transfer of 550 thousand barrels per day on average in 2015 compared to resume budget payments.

516 thousand and 745 barrels per day were exported on average from the region in July through a pipeline to the Turkish port of Ceyhan on the Mediterranean Sea as SOMO did not get only on 71 and 17 thousand barrels per day from them.