The Kurdistan region is borrowing more money from oil buyers

The Kurdistan region is borrowing more money from oil buyers



02-09-2017 03:28 PM

The Euphrates -
 
The Kurdistan Regional Government (KRG) has borrowed money from oil buyers, including Russia's Rosneft, to help settle a $ 1 billion deal with Dana Gas, the oil sector said.

Sources in the sector said the semi-autonomous regional government had restructured some existing agreements to finance crude exports with oil buyers to raise funds to settle a long-term suit with Dana Gas and its UAE-based partners, Reuters reported.

The announced settlement of Dana Gas is a new sign that the region is in the process of organizing its fiscal year ahead of the referendum scheduled for the 25th of this month. Last week, Kurdistan also signed agreements with several of its top oil producers to settle outstanding debts .

Majid Jafar, managing director of Dana Gas, said the KRG had a stated goal of debt settlement with investors so as to increase the attractiveness of the region to investors, develop their reserves faster and eventually raise more funds.

The sources said that the Kurdistan region asked Rosneft and trading companies led by Trafigura to restructure existing agreements for pre-financing oil exports and defer some payments.

It is noteworthy that commercial companies had financed the Kurdistan region over the past three years and joined Rosneft this year, as the Russian company seeks to expand abroad and often represent the foreign policy tool of the Russian government, and before the latest round of lending, lent business and Rosneft government of the region about three billion USD to ensure future oil sales.

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