LONDON - Gulf Keystone Petroleum Ltd. (LSE: LON:GKP), a key independent oil operator in the Kurdistan Region of Iraq, provided an operational and corporate update today. The company reported sustained strong local sales and an increase in production, with a gross average production of approximately 47,900 barrels of oil per day (bopd) to date in 2025. This performance underpins the company’s ability to generate material free cash flow and continue its commitment to returning excess cash to shareholders.
In 2024, Gulf Keystone achieved a gross average production of 40,689 bopd, marking an 86% increase from the previous year. This surge was primarily due to a full year of local sales following the suspension of pipeline exports in 2023. Despite temporary disruptions, such as truck availability during regional holidays and elections, the company managed to maintain strong production levels. The average realized price for 2024 sales stabilized at around $27 per barrel.
Financially, the company reported a 22% increase in revenue for 2024, amounting to $151 million. Its disciplined approach to capital and cost management resulted in a net capital expenditure of $18 million, in line with guidance, and operating costs of $52 million, reflecting a lower gross operating expense per barrel due to increased production. The company ended the year with a cash balance of $102 million and no debt, allowing for $45 million in shareholder distributions, including dividends and share buybacks.
Looking ahead to the remainder of 2025, Gulf Keystone expects to maintain gross average production within the range of 40,000 to 45,000 bopd, assuming current local market demand continues. The forecast takes into account planned shutdowns for maintenance, anticipated field declines, and potential disruptions to local market demand. The company estimates a net capital expenditure of $25-$30 million for the year, focusing on safety, reliability, and maintaining capacity at existing wells.
Gulf Keystone continues to engage with government stakeholders to find a solution for restarting crude exports through the Iraq-Turkey Pipeline. The outcome of negotiations and potential amendments to the Iraqi Budget Law could impact the resumption of exports.
The company’s current share buyback program, launched on October 8, 2024, is ongoing and will run until the earlier of its completion or the 2024 Full Year Results on March 20, 2025. The Board plans to review the capacity for declaring an interim dividend around the Full Year and Half Year Results, with the next review scheduled for March 2025.
This update is based on a press release statement and has not been independently verified.
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