At a Glance:

• Gulf Keystone restored crude production at the Sheikhan field to 40,000 barrels per day.
• International crude exports delivered significantly stronger revenues than domestic market sales.
• The company generated $24.6 million in revenue during H1 2026, holding $63.5 million in cash.
• Operator targets a full return to pre-war baseline levels of 45,000 barrels per day next year.

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Gulf Keystone Petroleum has officially resumed full-scale oil production and export operations at the Sheikhan field in Duhok Governorate following temporary operational cutbacks. Driven by renewed regional tripartite arrangements, the London-listed operator expanded daily output to 40,000 barrels per day, signaling a stabilization step for the Kurdistan Region’s upstream energy sector.

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Key Statements and Focus Area:

• Corporate Outlook on Exports:"Crude oil exports provided far greater financial benefits to both the Kurdistan Region and the company compared to local market sales." — Official operational release by Gulf Keystone Petroleum.
• Operational Resilience:"Restoring production levels to 40,000 barrels daily demonstrates relative operational stability while ensuring continuous payment schedules for current deliveries." — Statement from Association of the Petroleum Industry of Kurdistan (APIKUR) partners.

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Production Surge and Export Revenue Strategy

Following security-driven output reductions in early 2026, which saw production drop to approximately 14,600 barrels per day amid regional conflicts, Gulf Keystone systematically ramped up field operations. Leveraging refreshed export agreements, the company increased output to 40,000 barrels per day. Financial disclosures confirm H1 2026 revenues reached $24.6 million, supported by a healthy liquidity position of $63.5 million in cash reserves.

Post-War Rehabilitation and 2027 Growth

As the primary operator of the Sheikhan block, Gulf Keystone had previously limited field activity to safeguard infrastructure during regional security disruptions involving Iran, Israel, and the United States. With operational conditions stabilizing, management is outlining expansion targets for 2027 to push daily capacity past 45,000 barrels.

FYI

The recovery of the Sheikhan field serves as a critical indicator for the broader economic health of the Kurdistan Region. Re-establishing international export channels over discounted local sales provides vital fiscal relief to both foreign operators and regional authorities. As member companies of APIKUR work to secure permanent export infrastructure solutions, sustained production at core fields remains essential to maintaining state revenue streams and foreign investment confidence.

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