Gulf Keystone Petroleum cuts costs, keeps Shaikan offline Proactive uses images sourced from Shutterstock
Gulf Keystone Petroleum Limited (LSE:GKP) said it has cut monthly cash burn by almost 50% as it keeps the Shaikan Field offline following a precautionary shut-in earlier this year.
The Kurdistan-focused oil producer said Shaikan has remained offline since 28 February 2026 due to the regional security environment, though the company said it is ready to restart production and exports immediately once safe to do so.
Cash stood at US$66 million as of 18 June, after the company paid a US$12.5 million semi-annual dividend in April. GKP said operating costs are minimal while production is shut in, with action also taken to reduce staff costs and other general and administrative expenses.
Most capital projects have been slowed or suspended, with only safety-critical or highly strategic work continuing, including the installation of water handling at PF-2. The company said it retains flexibility to cut expenditure further if security issues persist.
Chief executive Jon Harris said the group had acted to preserve its financial strength while remaining ready to restart output at full capacity. GKP said it continues to work with the Kurdistan Regional Government, Iraq’s Federal Government and other stakeholders, and will reinstate 2026 annual guidance once production has resumed and the impact of the shut-in is known.