Source: Roonbin Organization for Transparency in Oil Processes
Author: Yadgar Sdiq Galali

Summary of Production and Revenues

The Shaikan oil field’s average daily production in the first eight months of 2025 was 41,638 barrels per day, sold at an average price of $27 per barrel.

• Total revenues: $268 million

• Share of companies: 44.6% → $100 million for Gulf Keystone (GKP) and $19 million for MOL

• Share of Kurdistan Regional Government (KRG): $148 million → 55.4%

Introduction

This report is based on company reports, joint-production agreements, and field data verified by our observers. It:

• Tracks monthly production and sales.

• Details revenues and cost-sharing between KRG, GKP, and MOL.

• Discloses company debts, costs, and profits.

• Provides background on Shaikan field and its reserves.

• Uses simplified language for public accessibility.

Production Trends (Jan – Aug 2025)

• Jan – May: Production averaged >46,500 barrels/day.

• June: Dropped to 31,800 bpd due to Eid al-Adha and the 12-day Iran–Israel war.

• July: Further fell to 21,200 bpd after a drone strike near Shaikan (affecting nearby fields).

• August: Recovered to 39,600 bpd by Aug 26. Current output stabilized at ~45,000 bpd (26,000 from PF-1, 19,000 from PF-2).

Comparison:

• H1 2025 production: 44,100 bpd (+12% vs H1 2024 at 39,252 bpd).

• First 8 months total: 9.6 million barrels.

Revenues

• Average oil price (H1 2025): $27.8/bbl → up 6% from $26.3 in H1 2024.

• Still $44.1 below Brent crude (average Brent price: $71.9).

• Total revenues H1 2025: $221.9m

  • GKP: $83.1m (+17% vs 2024)

  • MOL: $16m

  • KRG: $122.8m

• Total revenues Jan–Aug 2025: $268.9m

  • GKP: $100.7m

  • MOL: $19.3m

  • KRG: $148.8m

Costs & Profits

• Operating costs (H1 2025): $26.9m (+13% from 2024, mainly due to reopening two wells).

• Operating cost per barrel: ~$4.4 (unchanged).

• Capital expenditure: $18.1m (up from $7.8m in 2024, mainly for PF-2 upgrades). Expected to reach $30–35m by year-end 2025.

• Profit distribution:

  • $25m already paid to shareholders in H1 2025.

  • Another $25m scheduled for Sept 30.

  • Total dividends 2025: $50m → $0.1152/share.

Future Plans

• PF-2 water handling unit scheduled for 2027, expected to add 4,000–8,000 bpd and reduce gas flaring.

• Oil continues to be sold to domestic buyers in Kurdistan since pipeline exports stopped. Price range: $27–28/bbl.

Company Debts & KRG Arrears

• Total KRG debts to GKP + MOL: $192.8m (including $150.5m unpaid costs + $42.3m unpaid profits).

• GKP share: $151.1m (120.4m opex + 30.7m profit).

• MOL share: $42.7m (30.1m opex + 11.6m profit).

• KRG commercial debt: $171m, tied to crude exports (Oct 2022 – Mar 2023).

Shaikan Field Overview

• Location: Duhok governorate, 60 km NW of Erbil.

• Operators: Gulf Keystone (UK) 80%, MOL (Hungary) 20%.

• Oil discovered: Aug 2009, production began 2013.

• Total produced (up to Aug 26, 2025): 145m barrels.

• Oil quality: heavy crude, API 27°, high sulfur, discounted by ~$23–29 below Brent.

• Wells: 18 total, tied to PF-1 & PF-2 facilities (capacity: 60,000 bpd).

• Reserves (end of 2023):

  • 1P (Proven): 224m barrels

  • 2P (Probable): 489m barrels

• Production lifespan estimate: ~28 years → economic cutoff in 2047.

The Shaikan oil field remained stable despite war and drone attacks in mid-2025. Production averaged 41.6k bpd in the first 8 months, generating $268m revenues (55.4% to KRG). Costs remain low ($4.4/bbl), and dividend payments continue. However, KRG still owes $192.8m in arrears to the companies.