# Gulf Keystone to Merge With ShaMaran Petroleum in $601 Million Deal

- URL: https://stocks.freetheai.org/news/gulf-keystone-to-merge-with-shamaran-petroleum-in-601-million-deal-eaf3a8
- Published: 2026-10-20T06:00:00Z
- Category: mergers; sentiment: bullish; impact: high
- Symbols: [LSE:GKP](https://stocks.freetheai.org/symbols/LSE-GKP)
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Gulf Keystone Petroleum Limited (LSE:GKP) has agreed to combine with ShaMaran Petroleum Ltd. in an all-stock transaction valuing ShaMaran at approximately $601 million. Under the terms of the merger, ShaMaran shareholders will receive 0.07533958 newly issued shares in Gulf Keystone Petroleum Limited for each share held. Upon completion, existing shareholders of each company will own approximately 50% of the combined business. In addition, Gulf Keystone Petroleum Limited intends to pay a $50 million special dividend to its current shareholders at closing.

The transaction creates a larger independent oil producer focused on the Kurdistan Region and Federal Iraq. The merged business will feature a market capitalization exceeding $1 billion, combined estimated working interest 2P reserves of 323 million barrels of oil, and pro-forma daily production of 53,000 barrels across four long-life assets. The increased scale is designed to improve cash flow generation, lower operating risks, and enhance future shareholder distributions.

To finalize the transaction, both companies must secure shareholder approval at special general meetings planned for around December 22, 2026, requiring a 75% majority vote for Gulf Keystone Petroleum Limited and a 66.67% majority for ShaMaran. A detailed merger information document is scheduled for publication around December 1, 2026. Following completion, the combined entity intends to list on the Euronext Oslo Børs main market and discontinue its listing on the London Stock Exchange.

## Key points

- Gulf Keystone Petroleum Limited (LSE:GKP) and ShaMaran Petroleum Ltd. agreed to an all-stock statutory merger valuing ShaMaran at approximately $601 million.
- ShaMaran investors will receive 0.07533958 Gulf Keystone shares per share, leaving shareholders of both companies with an equal 50% ownership split.
- Gulf Keystone Petroleum Limited intends to issue a $50 million special dividend to its current shareholders when the transaction closes.
- The combined company will produce 53,000 barrels of oil per day with estimated 2P working interest reserves of 323 million barrels.
- Shareholder votes are scheduled for around December 22, 2026, with plans to list the merged entity on the Euronext Oslo Bors.

## Questions and answers

### What are the terms of the merger between Gulf Keystone and ShaMaran?

ShaMaran shareholders will receive 0.07533958 newly issued Gulf Keystone Petroleum Limited shares per share, giving both investor groups a 50% stake in the combined entity. Gulf Keystone also plans to pay a $50 million special dividend to its current holders at closing.

### When will shareholders vote on the Gulf Keystone and ShaMaran transaction?

Special general meetings for shareholders of both companies are expected on or about December 22, 2026, following the publication of a joint merger information document around December 1, 2026.

### Where will the combined oil company be listed?

The combined business intends to list on the Euronext Oslo Bors main market and discontinue its London Stock Exchange listing in due course.