Gulf Keystone and ShaMaran Petroleum Agree to $601 Million Oil Merger
ShaMaran Petroleum Ltd. (SNM) and Gulf Keystone Petroleum Ltd. (GKP) have agreed to combine their businesses through a statutory merger valued at approximately $601 million USD. Under the terms of the all-stock transaction, ShaMaran shareholders will receive 0.07533958 newly issued Gulf Keystone shares for each ShaMaran share, representing a 22.9% premium to ShaMaran's closing share price on October 19, 2026. Gulf Keystone also plans to pay a $50 million special dividend to its existing shareholders at closing, after which shareholders of each company will hold roughly 50% of the combined entity.
The deal brings together four low-cost oil fields across the Kurdistan Region of Iraq and Federal Iraq, establishing an independent energy producer with a market capitalization over $1 billion USD. The combined business holds estimated 2P reserves of 323 million barrels of oil and working interest production of 53 thousand barrels of oil per day. The expanded operational scale and complementary asset base are designed to boost cash generation, lower financing costs, and support future capital distributions.
Shareholders of both companies are expected to vote on the merger at special general meetings scheduled around December 22, 2026. The transaction requires approval from 75% of Gulf Keystone votes cast and two-thirds of ShaMaran votes cast. Major shareholders holding 25.6% of ShaMaran and 13% of Gulf Keystone have already indicated their support. Following completion, the combined company intends to list on the Euronext Oslo Børs main market and discontinue its listings in London, Stockholm, and Euronext Growth Oslo.
Key points
- ShaMaran Petroleum Ltd. (SNM) and Gulf Keystone Petroleum Ltd. (GKP) signed an agreement to merge in an all-stock deal valued at $601 million USD.
- ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each share held, giving each group roughly 50% ownership of the combined firm.
- Gulf Keystone plans to pay its existing shareholders a $50 million special dividend at closing.
- The combined company will have 323 million barrels of 2P oil reserves and production of 53 thousand barrels per day across Iraq and Kurdistan.
- Special general meetings to vote on the transaction are planned for around December 22, 2026.
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What are the terms of the merger between ShaMaran and Gulf Keystone?
ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each ShaMaran share held, valuing ShaMaran at about $601 million USD. Gulf Keystone also plans to pay a $50 million special dividend to its current shareholders at closing, resulting in 50% ownership for each shareholder group.
When will shareholders vote on the proposed merger?
Special general meetings for both companies are expected to be held on or around December 22, 2026. Approval requires 75% of votes cast for Gulf Keystone and a two-thirds majority for ShaMaran.
Where will the combined company's shares be listed?
The combined company plans to list on the Euronext Oslo Børs main market. Listings for Gulf Keystone on the London Stock Exchange and for ShaMaran on Euronext Growth Oslo and Nasdaq First North Stockholm will be discontinued.