Gulf Keystone Petroleum Ltd. (GKP.L) said on Friday that it is seeking to secure the conditions required to safely restart output at its Shaikan Field, which was closed in February due to security concerns. Once production has resumed and after assessing the shutdown's impact, the company plans to reinstate fiscal 2026 guidance.
In an update ahead of its 2026 AGM, the Kurdistan-focused oil producer said the Shaikan Field has been offline since a precautionary shut-in on February 28, 2026 tied to the regional security environment.
The firm had slashed monthly cash burn by almost 50% while its Shaikan Field remained shut. The company slowed or halted most capital spending except safety-critical work and strategic projects such as water handling installation at PF-2, while operating costs stayed minimal during the shutdown and staff and administrative expenses were cut.
Gulf Keystone added that it paid a $12.5 million semi-annual dividend to shareholders in April 2026.
Looking ahead, Gulf Keystone said it could resume output immediately when safe, calling recent regional developments encouraging.
The firm is in talks with the Kurdistan Regional Government, Federal Government of Iraq and other stakeholders to secure the conditions required to safely restart production. An update will be provided once volumes have ramped up and stabilised.
Talks continue on export deals and a revised field development plan with Kurdish authorities.
"Despite the recent shut-in of the Shaikan Field, we have responded swiftly and decisively to preserve our financial strength while maintaining our readiness to quickly restart production at full capacity. We remain focused on securing the conditions required for a safe resumption of production following the recent encouraging developments in the regional security environment. We also continue to progress towards sustainable exports sales at international prices", Jon Harris, Gulf Keystone's Chief Executive Officer, said.
On the LSE, shares of Gulf Keystone were gaining 1.80 percent, changing hands at 181.20 pence.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.