Gulf Keystone Petroleum (GKP), the largest independent producer in the Kurdistan Region of Iraq, has resumed Shaikan output after a second precautionary halt over regional security

Gulf Keystone Petroleum (GKP), the largest independent producer in the Kurdistan Region of Iraq, has resumed Shaikan output after a second precautionary halt over regional security. In its half-year report released on August 25, the London-listed operator said gross output at Shaikan, in Duhok Governorate, restarted on August 16 and was approaching 40,000 barrels per day, with well activities under way to lift volumes further. The field had been shut in twice this year. The first stoppage ran from February 28 to June 23, after which production ramped up above 45,000 bpd before a second suspension between July 19 and August 15. Gross average production in the first half slumped to 14,600 bpd, from 44,100 bpd in the same period of 2025. CEO Jon Harris said the interruptions had tested the company but that decisive cost action had preserved liquidity. “GKP’s operational and financial performance in the first half of 2026 demonstrated the resilience of our business, our people and the Shaikan Field through a period of significant regional disruption,” he said, adding that the priority had been “the safety of our workforce while decisive action to reduce expenditures has enabled us to minimise cash outflow, maintain a robust, debt-free balance sheet and pay a $12.5 million dividend to shareholders”. Revenue on an entitlement basis was broadly flat at $82.8mn, against $83.1mn a year earlier, as an average realised price of $83.5/bbl — a $8.8/bbl discount to Dated Brent — offset the volume decline. Cash receipts under the tripartite interim export arrangement equated to roughly $30/bbl, with the balance accruing as a top-up receivable. Adjusted EBITDA rose to $51.7mn from $41.1mn, helped by a 25% cut in operating costs to $20.2mn. Free cash outflow was held to $2.0mn. Cash stood at $63.5mn on August 24, with no debt. The board declared a further semi-annual dividend of $10mn. Net capital expenditure of $18.3mn was directed at safety-critical upgrades, workovers and the PF-2 water handling facility, which remains on schedule for start-up in the first quarter of 2027. Harris said the interim export agreements between international oil companies, the Federal Government of Iraq and the Kurdistan Regional Government — extended for six months to end-January 2027 — had “worked effectively, with improved remuneration relative to local sales and consistent payments without delay following crude liftings”. Gulf Keystone is pressing for full PSC entitlement at international prices and additional liftings from the third quarter, and is in talks with Kurdistan’s Ministry of Natural Resources on a revised Shaikan field development plan ahead of a possible return to drilling in 2027.