Baghdad (IraqiNews.com) – Gulf Keystone Petroleum and ShaMaran Petroleum have reached a merger agreement, becoming one of the top private oil producers in Iraqi Kurdistan.
According to a statement from the corporation, the all-share acquisition is worth $601 million, Reuters reported.
As of October 19, shareholders of ShaMaran, who are listed on Euronext, will receive 0.075 shares of Gulf Keystone for each share of ShaMaran they own, reflecting a premium of 23 percent.
Each company’s stockholders will own roughly half of the merged business when the merger is complete.
According to the announcement, Gulf Keystone intends to cease its London listing and transfer its principal listing to Euronext Oslo Bors’ main list.
Following the completion of the deal, the listing of ShaMaran shares will end.
The proposed combination has received unanimous approval from the boards of Gulf Keystone and ShaMaran. December will see special meetings to complete approval.
With combined estimated reserves of 323 million barrels and daily production of 53,000 barrels of oil, the merged business is expected to profit from greater size and diversity.
As part of its ambitions to increase its oil production capacity, Iraq has given many contracts to businesses from the United States, China, France, and other countries.
As Baghdad looks to boost natural gas supply and oil output, British Petroleum (BP) and its US and Turkish partners took over operations at four oilfields in the northern Iraqi province of Kirkuk this week.
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