A sharp drop in oil prices earlier this year, and the outbreak of Coronavirus caused a slowdown in the production of crude oil in the Kurdistan Region. The drop in oil prices prevented the KRG from paying foreign oil companies in time.

However, the Norwegian DNO company, which is extracting crude oil in the Tawke, Pishkhabour and Baashiqeh oilfields in the Kurdistan region, has announced in its latest report that oil prices has stabilized, the company has received its payments from the region and, therefore, the production of the crude oil has increased.

On average, the company's crude oil production in the Kurdistan Region has reached to around 115,000 barrels per day, with a 150,000 barrels increase in the oil production, according to the report.

In addition, the Kurdistan Regional Government has paid a total of $225 million to DNO in the first six months of this year.

The company also announced it is in negotiations with the Kurdistan Regional Government to reach an agreement on oil production conditions and a payment timetable.

The company's executive director has announced that working conditions in the Kurdish region is improving and investment is increasing in the region which will lead into improving crude oil production in the autonomous region in the north of Iraq.

Reporter’s code: 50101