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LONDON/ERBIL, Iraq, Aug 27 (Reuters) - Iraq's Kurdistanregion said on Thursday it expected to begin making regularpayments to oil-exporting companies in the first half ofSeptember, sending shares in those firms up as high as 17percent in early trade.
The Kurdish Ministry of Natural Resources said in astatement that $75-$100 million of revenue from its direct crudeoil sales would be allocated as payment on account to thecompanies.
The autonomous region has ramped up independent sales sincemid-June while cutting allocations to Iraq's state oil firm SOMOin an escalating dispute over export rights and budget paymentsthat led to companies going unpaid.
"Regular payments will allow the exporting companies tocover their ongoing expenses and plan for further investment inthe oilfields, which will in turn boost production," thestatement read.
"As oil export rises in early 2016, the KRG (KurdistanRegional Government) envisages making additional revenueavailable to the exporting IOCs (international oil companies) toenable them to begin to catch up on the past receivables dueunder their production-sharing contracts."
Oil producers across the globe are trying to deal with thefinancial fallout of a sharp decline in crude prices since lastyear's peak in June.
In Kurdistan, that has been compounded by an ongoing rowwith Baghdad, which slashed funds to the region last year,rendering it unable to pay its own employees' salaries, letalone oil company dues.
Shares in Genel opened 17 percent higher, GulfKeystone Petroleum was up 7 percent, and Norway's DNO 10 percent after the statement.
Gulf Keystone's Chief Executive Jon Ferrier said he was"very encouraged" by the announcement: "We need a regularpayment cycle to ensure our commercial sustainability and tofurther develop the world-class Shaikan field. Today's newsmarks a promising start to that process."
Gulf Keystone said on Thursday it was owed $283 million foroil sales and other costs from the KRG.
June was the first month of large independent sales sinceDecember last year, when Kurdistan reached a deal with Baghdadto contribute 550,000 barrels per day (bpd) to Iraq's oilexports in 2015 in return for reinstated budget payments.
An average of 516,745 bpd was exported from the Kurdistanregion in July via pipeline to the Mediterranean port of Ceyhanin Turkey, but only 71,017 bpd was transferred to SOMO. (Reporting by Isabel Coles and Karolin Schaps; Editing by JasonNeely and Dale Hudson)
