ShaMaran Petroleum Enters Hamrin Joint Venture and Agrees Merger With Gulf Keystone
ShaMaran Petroleum Ltd. (OSL:SNM) has agreed to acquire a 25% stake in the Hamrin joint venture in Federal Iraq while carrying $35 million in initial costs for HKN. Alongside the expansion, the company signed a merger agreement with Gulf Keystone. Shares of ShaMaran Petroleum Ltd. rose 2.76% to 1.767 NOK following the announcements.
The entry into the Hamrin field expands the company's operating presence beyond Kurdistan into Federal Iraq. The asset currently delivers baseline production of approximately 20,000 barrels of oil per day, providing immediate cash generation, with a project target to increase output to roughly 60,000 barrels per day by 2028. To fund capital expenditure and reorganize its debt, ShaMaran is contemplating a new bond issue of up to $200 million to refinance about $144 million of notes maturing in 2029.
Key developments to follow include the final pricing and terms of the proposed bond offering, progress toward completing the merger with Gulf Keystone, and operational updates regarding the production ramp-up at the Hamrin asset.
Key points
- ShaMaran Petroleum Ltd. agreed to acquire a 25% stake in Federal Iraq's Hamrin joint venture and carry $35 million of initial costs for HKN.
- The company signed a merger agreement with Gulf Keystone to potentially expand its operational platform in Iraq.
- ShaMaran is contemplating issuing up to $200 million in bonds to refinance roughly $144 million in 2029 notes and finance capital spending.
- Baseline production at the Hamrin field is about 20,000 barrels of oil per day, with a target of around 60,000 barrels per day by 2028.
- Shares of ShaMaran Petroleum Ltd. traded up 2.76% to 1.767 NOK following the announcement.
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How we writeDisclaimerQuestions and answers
What are the details of ShaMaran Petroleum's stake in the Hamrin joint venture?
ShaMaran Petroleum is taking a 25% stake in the Hamrin joint venture in Federal Iraq and carrying $35 million of initial costs for HKN.
Why is ShaMaran Petroleum planning a $200 million bond offering?
ShaMaran is considering a bond issue of up to $200 million to refinance approximately $144 million of notes due in 2029 and fund upcoming capital expenditure.
What is the production target for the Hamrin field?
The Hamrin field currently produces approximately 20,000 barrels of oil per day, with plans to increase production to around 60,000 barrels per day by 2028.