Kurdish oil producers DNO, Genel gain on export pledge

MIKAEL HOLTER

ERBIL, Iraqi Kurdistan (Bloomberg) -- DNO ASA and Genel Energy Plc shares surged after the regional government of Iraq’s northern Kurdish region said it would start paying them for oil exports next month.

Oslo-based oil producer DNO rose as much as 26%, the most since November 2011, while Genel gained 10% in London, reversing earlier losses. Gulf Keystone Petroleum Ltd. added as much as 18%.

The Kurdistan Regional Government will start allocating a part of revenue from oil exports to producers on a monthly basis from September, and may make additional revenue available to the companies as shipments rise next year, it said in a statement on its website.

The monthly payments would be the first stable mechanism of export compensation for the companies amid a dispute over revenue sharing between the KRG and Iraq’s federal government that’s dragged on for years. Exports from the Kurdish region have been halted because of repeated attempts at theft and sabotage on pipelines carrying crude to the Turkish port of Ceyhan, Kurdistan’s Ministry of Natural Resources said Sunday.

DNO rose 20% to 9.15 kroner a share as of 1:28 p.m. in the Norwegian capital. Genel gained 7.1% to 398 pence and Gulf Keystone traded 16% higher at 33.75 pence in London.