GKP Announces Estimates on Recoverable Oil at Iraqi Oilfield

Gulf Keystone Petroleum (GKP) estimates that the Hamrin oilfield in Iraq has 7 billion barrels of oil in total, of which 0.5 billion to 1 billion barrels is recoverable, CEO Jon Harris said. Hamrin currently produces 20,000 barrels per day of oil with a target to increase output to 60,000 bpd by the end of 2028, Harris told Reuters. GKP said that it would merge with Norway's ShaMaran Petroleum in a US$601 million 50-50 all-share deal. The deal combines operations across four Iraqi fields: Shaikan, Atrush, Sarsang and Hamrin.

Gross output from Iraqi Kurdistan's Shaikan oilfield is expected to rise to more than 90,000 bpd from about 45,000 bpd by 2030 if drilling starts next year, Harris said. Harris expects there to be other opportunities in Iraq, which the company will take on merit, including stake sales on US assets in the country. The ShaMaran merger is expected to double GKP's working interest production to 53,000 bpd of oil, up from 28,000 bpd.