Independent Oil Producer
Gulf Keystone Petroleum and ShaMaran Petroleum have agreed to an all-share merger.
The merger would create an independent oil producer focused on the Kurdistan Region of Iraq and Federal Iraq, with a market capitalization exceeding $1 billion.
The combination would unite Gulf Keystone’s Shaikan field (operated, 61.5% working interest) in Kurdistan with ShaMaran’s non-operated interests in Atrush (50%, HKN Energy-operated) and Sarsang fields (18%, HKN Energy-operated) and its planned investment in the producing Hamrin field in Federal Iraq.
Hamrin currently produces about 20,000 b/d. The combine would target about 60,000 b/d by 2028, with subsequent phases potentially doubling production.
Together, Shaikan and Hamrin could increase the combined company’s working-interest production to about 100,000 b/d of oil, Gulf Keystone said, while holding an estimated 323 million bbl of working-interest 2P reserves.
“The merger creates a stronger company with greater scale, a highly complementary portfolio and a stronger cash flow profile,” said David Thomas, Gulf Keystone non-executive chair. “Expected near-term cash flow from ShaMaran’s assets complements the long-term growth potential of the combined company.”
The transaction is contingent on ShaMaran acquiring a 25% interest in Hamrin field from HKN Energy, which must be completed before or at the merger closing. Under that agreement, ShaMaran will carry $35 million of HKN’s initial costs and make an additional $15 million payment from future cash flow.
The merger between Gulf Keystone and ShaMaran is expected to close mid-2027, subject to customary conditions. Gulf Keystone will be the surviving entity. The deal values ShaMaran at $601 million.
