22nd Jan 2026 12:26
(Alliance News) - Gulf Keystone Petroleum Ltd on Thursday said it continues to consider a potential listing in Oslo as it expects oil output to fall in 2026.
The Bermuda-registered oil producer focused on the Kurdistan region of Iraq said 2025 gross average production was 41,560 barrels of oil per day, towards the upper end of its 40,000 to 42,000 bopd guidance and up 2.1% from 40,689 bopd in 2024.
Looking ahead, the firm expects 2026 gross average production of between 37,000 and 41,000 bopd, between 1.3% and 11% lower than in 2025.
The expected fall in production reflects natural field declines in the absence of drilling, Gulf Keystone said. It added that preparations are underway to restart drilling later in 2026, assuming consistent export payments and a return to international prices.
Cash collected for crude sales was USD122 million in 2025, down 15% from USD144 million in 2024.
The company reported an average realised price of around USD30 per barrel in 2025 for export sales, 57% lower than the international average price of USD69 for 2025 for Brent crude oil, according to data from the US Energy Information Administration. It is however 7.1% higher than the average realised local price of USD28 for 2025.
Gulf Keystone plans a return to international prices.
The firm had to sell oil locally because the main export pipeline through Turkey shut down in March 2024. The Iraq-Turkey pipeline opened again in late September 2025. Gulf Keystone has since sold oil under interim export agreements for a price that is lower than the international price, but slightly above the local price.
The company on Thursday said regular liftings and payments for international oil companies crude exports continue after an extension of interim agreements to the end of March 2026.
Chief Executive Officer Jon Harris said: "2025 was a strong year for GKP, with production towards the top end of our tightened guidance range. Capital expenditure and cost discipline helped deliver material free cash flow generation underpinning USD50 million of dividend payments. Kurdistan pipeline exports restarted in September 2025 after over two and half years and regular exports liftings and associated payments, which commenced in the fourth quarter of 2025, have continued into 2026 following a smooth extension of the interim agreements.
"Looking ahead, we expect 2026 to be a pivotal year. Assuming continued consistent exports payments and a return to international prices, we intend to swiftly resume drilling later in the year. This will position us to organically grow production in 2027 as additional volumes from the installation of water handling are also expected to come on stream. We will remain disciplined, coupling incremental capital investments with shareholder distributions to continue delivering value for all stakeholders."
The company added that it continues to actively mull a potential listing on the Euronext Growth Oslo, subject to favourable market conditions.
Gulf Keystone shares fell 6.4% to 173.80 pence each on Thursday afternoon in London.
By Tom Budszus, Alliance News slot editor
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