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

- URL: https://stocks.freetheai.org/news/shamaran-petroleum-to-merge-with-gulf-keystone-in-601m-deal-2b6b92
- Published: 2026-10-20T06:00:00Z
- Category: mergers; sentiment: bullish; impact: high
- Symbols: [OSL:SNM](https://stocks.freetheai.org/symbols/OSL-SNM)
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ShaMaran Petroleum Ltd. (SNM) has agreed to merge with Gulf Keystone (GKP) in an all-share combination valuing ShaMaran at approximately $601 million. Under the agreement, ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each ShaMaran share held. Gulf Keystone will serve as the surviving company, with existing shareholders of each company holding approximately 50% pro forma ownership. Gulf Keystone also intends to distribute a $50 million special dividend to its current shareholders at closing.

The transaction consolidates adjacent energy assets in Kurdistan, Iraq, adding scale and aligning operations across neighboring oil fields.

The merger is expected to close in mid-2027. Key items to watch include approvals from shareholders at upcoming special general meetings, consents from the Kurdistan Regional Government, final financing arrangements, and the execution of the special dividend.

## Key points

- ShaMaran Petroleum Ltd. (SNM) signed a merger agreement with Gulf Keystone (GKP), with Gulf Keystone remaining as the surviving entity.
- ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares per share held, implying an equity value of roughly $601 million for ShaMaran.
- Existing shareholders of both companies will each own approximately 50% of the combined entity.
- Gulf Keystone plans to pay a $50 million special dividend to its existing shareholders at closing.
- The merger is projected to complete in mid-2027, subject to shareholder and government consents.

## Questions and answers

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

ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each ShaMaran share held. The transaction values ShaMaran equity at about $601 million, giving shareholders of each firm roughly 50% ownership in the combined company.

### When is the ShaMaran and Gulf Keystone merger expected to close?

The transaction is scheduled to complete in mid-2027, subject to shareholder approvals, Kurdistan Regional Government consents, and financing steps.

### Will Gulf Keystone pay a dividend as part of the deal?

Yes, Gulf Keystone intends to issue a $50 million special dividend to its existing shareholders at closing.