Gulf Keystone, ShaMaran agree $601M Kurdistan oil merger

Shafaq News- Erbil

London-listed Gulf Keystone Petroleum announced on Tuesday an all-share merger with Oslo-listed ShaMaran Petroleum, valuing ShaMaran at approximately $601 million and creating one of the largest oil producers in the Kurdistan Region of Iraq (KRI).

Under the agreement, ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each share held, giving investors in each company approximately 50% of the combined business.

The merged company is expected to have a market capitalization exceeding $1 billion, with estimated working-interest production of 53,000 barrels per day and proved and probable reserves of 323 million barrels.

Gulf Keystone intends to move its primary listing to Euronext Oslo’s main market before eventually delisting from the London Stock Exchange. The merger remains subject to shareholder approval and other closing conditions, with completion expected in mid-2027.

The companies said the merger would combine Gulf Keystone’s Shaikan field with ShaMaran’s interests in the Atrush and Sarsang fields, alongside its planned investment in the Hamrin field in federal Iraq.

Other companies active in the Kurdistan Region have also pursued acquisitions. Genel Energy and DNO have submitted competing offers for Capricorn Energy, whose board recommended Genel’s increased proposal.

Gulf Keystone’s core asset is the Shaikan field in Duhok, one of the KRI’s largest producing fields. Output recently returned to around 40,000 barrels per day, while the field holds estimated gross proved and probable reserves of 416 million barrels and has produced more than 155 million barrels since commercial operations began in 2013.