ڕاپۆرت
Gulf Keystone Petroleum in the Kurdistan Region: Early 2026: By the end of February, production had increased to over 44,000 barrels per day, but from February 28, 2026, due to regional conflict and as a security precaution, the Shaikan oil field was completely shut down.
بڵاوکراوەتەوە لە : 24 ئازار 2026
قەبارەی دەقەکان
قەبارەی دەقەکان
Production volume (Shaikan field):
2025:
Average total production reached 41,560 barrels per day, a 2% increase compared to 2024.
Early 2026:
By the end of February, production increased to over 44,000 barrels per day, but from February 28, 2026, due to regional conflict and as a security measure, the Shaikan field was completely shut down.
Annual revenue:
The company’s revenue in 2025 reached $193.1 million, a 28% increase compared to 2024 ($151.2 million).
This growth was driven by the resumption of pipeline exports in September 2025.
$50 million was distributed as dividends to shareholders in 2025.
For 2026, an interim dividend of $12.5 million has been approved.
Oil selling prices (international and domestic):
Pipeline exports (international):
Average selling price was $50.5 per barrel
Domestic sales (within the Kurdistan Region):
Prices were significantly lower, averaging $27.6 per barrel
Under temporary export agreements, the company received $30 per barrel in cash.
Gulf Keystone Petroleum, a leading independent oil producer in the Kurdistan Region of Iraq, announced its financial results on March 19, 2026, for the financial year from January 1 to December 31, 2025.
In this regard, CEO John Harris said:
“In 2025, we delivered strong operational and financial performance in line with our guidance. We also completed another year without recording any major operational disruption. Generating free cash flow allowed us to continue implementing our strategy, maintaining a balance between investing in production growth projects and distributing $50 million in dividends to shareholders.
The resumption of Kurdistan oil exports through the pipeline in September 2025 was a major turning point for our company and the sector as a whole.
We started 2026 positively, with production exceeding 44,000 barrels per day by the end of February, and continued export payments supported the generation of cash flow. We also made good progress toward returning to international pricing levels, with reduced discounts compared to Brent in 2025 export invoices.
Following the escalation of regional tensions, we shut down the Shaikan field as a precautionary safety measure and took the necessary steps to protect our staff. We have also suspended our 2026 guidance until production resumes.
We hope security conditions will stabilize soon and we are ready to quickly restart production and exports once conditions are safe. We are in a strong position to navigate this disruption, as we have a solid, debt-free financial position and significant flexibility to reduce costs.”
After a detailed review of these factors and the current outlook, the Board approved the distribution of an interim dividend of $12.5 million.
Key Highlights as of December 31, 2025 and Post-Reporting Period
1. Operational
A. Strong operational performance in 2025:
Average total production reached 41,560 barrels per day, a 2% increase compared to the previous year (2024: 40,689 barrels per day), and close to the upper end of the guidance range (40,000–42,000 barrels per day).
A successful transition from oil sales via trucking to pipeline exports through the Iraq–Turkey pipeline starting on September 27, 2025.
Approval of water treatment facilities at the PF-2 plant, enabling future production growth and reducing oil storage risks.
Operations were conducted safely, with no major incidents recorded for more than three years, despite an intensive work program and security challenges.
B. Production in 2026 (until February 28):
Average production was approximately 41,300 barrels per day.
Production increased to over 44,000 barrels per day by the end of February, reflecting the success of well interventions and upgrades.
C. Shutdown (February 28, 2026):
The Shaikan field was shut down as a precautionary safety measure following:U.S. and Israeli strikes on Iran
Subsequent retaliatory attacks across the Middle East, including Kurdistan
Average production fell to approximately 32,100 barrels per day by March 17, 2026.
Estimated production losses are about 840 barrels per week.
The company is ready to quickly restart production and exports once security conditions improve.
2. Estimated Reserves (Shaikan Field)
Total 2P reserves are estimated at 416 million barrels as of December 31, 2025 (compared to 443 million barrels in 2024).
The decrease reflects:Production of 15 million barrels in 2025
A downward revision of 12 million barrels in reserves
3. Financial
A. Strong financial performance:
Disciplined investment in production growth projects
Strict cost control
Generation of free cash flow supporting shareholder distributions
B. Revenue:
Revenue increased by 28% to $193.1 million (2024: $151.2 million), driven by higher production and an improved average realized price of $33.9 per barrel (2024: $26.8).
Average export price: $50.5 per barrel, significantly higher than domestic sales ($27.6 per barrel), with a $13.4 discount to Brent.
Cash receipts from exports averaged $30 per barrel under temporary agreements.
C. Profitability:
Adjusted EBITDA increased by 46% to $111.4 million (2024: $76.1 million).
Operating costs remained stable at about $4.3 per barrel (2024: $4.4).
General and administrative expenses decreased by 18% to $9.3 million (2024: $11.4 million).
D. Capital expenditure:
Net capital expenditure totaled $38.8 million (2024: $18.3 million), aligned with guidance.
Investments included:Safety upgrades at PF-2
Well workovers
Initial costs for water treatment facilities
E. Free cash flow:
Free cash flow was $29.1 million (2024: $65.4 million).
Outstanding receivables related to export timing at the end of 2025 were collected in 2026 as expected.
F. Dividends:
$50 million was distributed to shareholders in 2025 through semi-annual payments in April and September.
G. Cash position:
Cash balance at the end of 2025: $78.2 million (2024: $102.3 million).
Increased to $89.1 million by March 18, 2026.
The company has no debt.
4. Company Outlook
Due to the deterioration of the regional security situation and the suspension of production, the company is reviewing its previous 2026 production guidance of 37,000–41,000 barrels per day.
Previous guidance for 2026 has been suspended:Capital expenditure: $40–50 million
Operating costs: $55–60 million
G&A expenses: less than $10 million
The company maintains a strong financial position and significant flexibility to reduce spending if production suspension continues.
Current temporary export agreements, which expire on March 31, 2026, are expected to be extended.
The company expects asset valuation under Production Sharing Contracts (PSC) to align with international pricing after completion of independent international reviews.
The company continues discussions with the Kurdistan Regional Government regarding long-standing commercial matters related to the Shaikan field, including settlement of past oil sales receivables and other government-related assets.
