VLRS Vallares

By Alex MacDonald

LONDON--Genel Energy PLC (GENL.LN) said Friday it has secured $9 million in oil export payments from the Kurdistan regional government of Iraq, the second such payment this month as the government seeks to reconcile a backlog of oil export payments to foreign oil producers.

Genel, chaired by former BP PLC (BP) chief executive Tony Hayward, has suffered reduced revenues this year due to delayed oil export payments from Kurdistan. The regional government has been waging an expensive war to fend off Islamic State militants and promised to resume oil export payments this fall. It's starting to pay with greater frequency although only a trickle of the total amount has been paid.

The payment on Friday to Genel, Kurdistan's largest oil producer, is part of a $30 million payment for oil from the Tawke field. A $16.5 million payment to Genel on Tuesday for oil from the Taq Taq field means the regional government has now paid 6.2% of the $409 million owed to the oil firm as of September end.

Genel announced earlier this week that it would curb its capital expenditure until it feels more comfortable about the timing of future oil payments. This resulted in narrower oil output and revenue targets for this year.

Genel noted that it's prepared to boost spending and therefore output once it receives more regular payments from Kurdistan.

-Write to Alex MacDonald at alex.macdonald@wsj.com

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(END) Dow Jones Newswires

October 23, 2015 03:27 ET (07:27 GMT)

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