Gulf Keystone reports continued momentum in Kurdistan region

(Sharecast News) - Gulf Keystone Petroleum reaffirmed its operational momentum in the Kurdistan region of Iraq on Wednesday, reporting higher output, resumed pipeline exports and improved cash flows as it works toward long-term export arrangements and potential field expansion. Chief executive Jon Harris said 2025 had been a "milestone year" for the company after pipeline shipments from the Shaikan field restarted in September following a hiatus of more than two and a half years.

"Liftings allocated to Gulf Keystone and other IOCs commenced in November and we are pleased to have recently received our first payment," he said.

"The process as outlined in the interim exports agreements is working and we look forward to a return to full PSC entitlement at international prices following the international independent consultant's review."

Gross average output year-to-date stood at about 41,400 barrels of oil per day, in line with tightened 2025 guidance of 40,000 to 42,000 daily barrels, while December production has averaged around 44,000 barrels per day.

The company said the return to exports via the Iraq-Türkiye Pipeline had progressed smoothly, with volumes ramping to near full well capacity.

Operational work continued across the Shaikan asset, including well workovers due to lift output in the first quarter of 2026 and safety and infrastructure upgrades at production facilities.

Financial performance had strengthened alongside the export restart.

Gulf Keystone said it had received its first payment for crude lifted in November, with realised prices of around $30 per barrel in line with interim export terms and higher than local sales.

Payments for future liftings were expected within 30 days.

The company said it was accruing a receivable balance to reflect the transition to export sales and the differential to international pricing.

It returned $50m to shareholders via dividends this year, and held cash of $75m as of 9 December.

The company confirmed it remained on track to meet 2025 guidance for production, capital spending and operating costs.

It said it expected interim export arrangements to roll over into next year pending a review of invoices and costs by an independent consultant.

Gulf Keystone said a full reconciliation to production-sharing contract entitlement at international prices and long-term export agreements was anticipated after the review concluded.

Negotiations with the Kurdistan Regional Government over historical commercial issues, including past oil sales arrears, were ongoing.

Looking to 2026, Harris said the company was preparing a base work programme to advance current projects and assess further development options.

"We are excited about a potentially transformational year for the Company and remain focused on executing for our shareholders," he said.

Gulf Keystone added that it was continuing to evaluate a potential listing on Euronext Growth Oslo, subject to market conditions.

At 1039 GMT, shares in Gulf Keystone Petroleum were down 1.35% at 175.8p.

Reporting by Josh White for Sharecast.com.