Gulf Keystone Petroleum and Norway-listed ShaMaran Petroleum have agreed to combine in an all-share transaction valuing ShaMaran at approximately $601 million. Gulf Keystone’s board and ShaMaran’s board have both approved the transaction and recommended it to shareholders.
The companies estimate that the enlarged group would have 323 million barrels of working-interest proved and probable reserves and pro-forma working-interest production of 53,000 barrels of oil per day.
Gulf Keystone intends to move its primary listing to the main market of Euronext Oslo and eventually discontinue its London listing, creating a single principal listing in Norway. ShaMaran’s Oslo shares and Swedish depositary receipts would cease trading when the merger is completed. The proposed combined company would have an estimated market capitalization above $1 billion, and the companies estimate annual general and administrative savings of up to $5 million.
Completion is not immediate. Shareholders must approve the deal at special meetings expected on or around Dec. 22, 2026, requiring at least 75% of votes cast at Gulf Keystone and two-thirds at ShaMaran. The transaction also requires relevant approvals from the Kurdistan Regional Government and other closing conditions. The companies expect those approvals to take six to nine months, with the merger becoming effective after registration in Bermuda and currently anticipated to close in mid-2027.
Gulf Keystone also intends, subject to applicable conditions and board approval, to pay its existing shareholders a special dividend of $50 million at closing. The two businesses will operate independently until completion. ShaMaran plans to refinance roughly $144 million outstanding on its 2029 bond, while Gulf Keystone is considering debt financing for some Shaikan development spending. If completed, Gulf Keystone would survive the Bermuda statutory merger, while ShaMaran would cease to exist as a separate legal entity.