Gulf Keystone Petroleum and ShaMaran Petroleum agreed on 20 October 2026 to merge in an all-share deal that values ShaMaran at about US$601m. The combination brings together neighbouring oilfields in the Kurdistan Region of Iraq.
Why Gulf Keystone Petroleum Ltd. is buying ShaMaran Petroleum Ltd.
The companies said the merger creates a leading independent producer focused on Kurdistan and Federal Iraq, with four low-cost, long-life assets and pro forma working-interest production of 53,000 barrels a day. Combining Gulf Keystone's operated Shaikan field with ShaMaran's adjacent Atrush and Sarsang interests is expected to deliver synergies and support shareholder distributions.
Deal terms and financing
ShaMaran shareholders will receive 0.07533958 new Gulf Keystone shares for each share, a 22.9% premium to ShaMaran's closing price on 19 October. Shareholders of each company will own about half of the combined group. Gulf Keystone intends to pay its existing shareholders a US$50m special dividend at closing. The Lundin family, which holds about 25.6% of ShaMaran, will become the largest shareholder with 12.8%.
Regulatory approvals and timing
The merger needs approval at special general meetings of both companies, expected around 22 December 2026, and customary closing conditions. It will take effect once Bermuda's Registrar of Companies issues a merger certificate, expected in mid-2027. It is a reverse takeover for Gulf Keystone under the UK Listing Rules.
Market context
Gulf Keystone plans to uplist to the main market of Euronext Oslo Børs and eventually drop its London listing, while ShaMaran's Oslo and Stockholm listings will end. ShaMaran announced on the same day a 25% investment in the Hamrin field in Federal Iraq, operated with HKN Energy.
