# ShaMaran Petroleum Enters Iraq Joint Venture and Plans Merger with Gulf Keystone

- URL: https://stocks.freetheai.org/news/shamaran-petroleum-enters-iraq-joint-venture-and-plans-merger-with-gulf-keystone-492eae
- Published: 2026-10-20T06:00:00Z
- Category: energy; sentiment: bullish; impact: high
- Symbols: [OSL:SNM](https://stocks.freetheai.org/symbols/OSL-SNM)
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ShaMaran Petroleum Ltd. (OSL:SNM) has agreed to acquire a 25% interest in HKN Hamrin Ltd. for the Hamrin field in Federal Iraq. The transaction includes an initial $35 million carry alongside $15 million in contingent payments. In tandem with the asset deal, the company signed a merger agreement with Gulf Keystone and selected Pareto to arrange a prospective bond issue of up to $200 million.

The transactions mark a broader diversification strategy, expanding the producer beyond its existing Kurdistan holdings into Federal Iraq. Funds raised from the contemplated debt sale are slated to refinance roughly $144 million of existing notes maturing in 2029 and support capital expenditures at Hamrin. Current output at the field stands at approximately 20,000 barrels of oil per day, with partners aiming to ramp up production to about 60,000 barrels per day by 2028.

Going forward, investors will watch for finalized pricing and terms on the bond offering, progress toward closing the Gulf Keystone merger, and operational updates on the production expansion at Hamrin. Shares of ShaMaran Petroleum Ltd. were trading up 2.76% at 1.767 NOK following the announcements.

## Key points

- ShaMaran Petroleum Ltd. acquired a 25% stake in the Hamrin field joint venture in Federal Iraq with a $35 million carry and $15 million contingent outlay.
- The company signed a merger agreement with Gulf Keystone to combine their energy operations and scale.
- Pareto has been mandated for a proposed bond offering of up to $200 million to refinance $144 million in notes and fund capital projects.
- Hamrin currently produces roughly 20,000 barrels of oil per day, targeting approximately 60,000 barrels per day by 2028.

## Questions and answers

### What is ShaMaran Petroleum acquiring in Federal Iraq?

ShaMaran Petroleum is taking a 25% stake in HKN Hamrin Ltd. for the Hamrin field joint venture, involving a $35 million carry and $15 million in contingent payments.

### Why is ShaMaran Petroleum proposing a new bond offering?

ShaMaran plans a bond offering of up to $200 million to refinance around $144 million in existing notes due 2029 and to fund capital expenditures for the Hamrin field.

### What are the production targets for the Hamrin field?

The Hamrin field currently produces about 20,000 barrels of oil per day, with plans to increase production to approximately 60,000 barrels per day by 2028.