Gulf Keystone Petroleum (LSE:GKP) has temporarily suspended production at its Shaikan Field in the Kurdistan Region of Iraq as a precautionary measure following the deterioration in the regional security environment. The decision mirrors actions taken by several other international oil companies operating in the area. Before production was halted, the Shaikan Field had been producing more than 45,000 barrels of oil per day.
The company said its facilities and infrastructure have not been affected by the recent security developments and that it is continuing to monitor the situation closely. While there is no indication of how long the shutdown will remain in place, the suspension highlights the geopolitical risks associated with operating in the region and could affect near-term production levels and revenue until operations resume.
Gulf Keystone continues to benefit from a strong balance sheet and relatively low leverage, providing financial resilience during periods of operational disruption. However, the company’s outlook is tempered by weaker technical indicators, including negative price momentum and a relatively high price-to-earnings ratio. Variability in cash generation, particularly following weaker free cash flow in 2025, also remains a consideration for investors.
More about Gulf Keystone Petroleum
Gulf Keystone Petroleum Ltd. is an independent oil and gas producer focused on the Kurdistan Region of Iraq. The company is listed on both the London Stock Exchange and the Oslo Stock Exchange and is the operator of the Shaikan Field, one of the region’s largest producing oil assets.
The company’s strategy centres on maximising production and value from the Shaikan Field while maintaining operational efficiency and managing the geopolitical risks associated with operating in northern Iraq.
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