The Kurdistan Regional Government’s (KRG) oil takings fell 39% in July as a combination of reduced sales volumes, lower oil prices and buyers slashing prepayments took its toll. Even after holding back on payments to IOCs for production, the revenue retained by the government slumped 19% to $390mn, far below what it needs to pay the bills.

The July report from the Ministry of Natural Resources (MNR) shows that the KRG managed to increase both production and export of crude oil in...