Gulf Keystone agrees merger with ShaMaran Petroleum
Gulf Keystone Petroleum (LSE:GKP) has agreed to merge with ShaMaran Petroleum, a deal the two companies are billing as the creation of a leading independent oil producer spanning the Kurdistan Region of Iraq and Federal Iraq. The announcement came alongside an operational and corporate update from the London-listed operator of the Shaikan field, which confirmed production and export operations are continuing at full well capacity of approximately 45,000 barrels of oil per day, a figure that has been hard-won after a turbulent year of security-related shutdowns. The shares fell 8.222% to 206.5p as investors digested the terms and implications of the tie-up alongside the update.
Shaikan output has been anything but steady through 2026, with the field shut in twice on security grounds, first between 28 February and 23 June, then again from 19 July to 15 August, before clawing back toward full capacity. Gulf Keystone also disclosed that a maiden top-up cargo was lifted recently after Iraq's State Oil Marketing Organisation allocated additional barrels to reconcile part of its fourth-quarter 2025 export sales to international prices, a milestone in the reconciliation process tied to the six-month extension of its tripartite export agreements through the end of January 2027. The company remains debt-free, with cash of $48.2 million as of 19 October, down from $63.5 million at the end of August after it paid out a $10 million interim dividend.
The merger reframes the investment case for Gulf Keystone at a moment when the underlying business has been proving its resilience rather than its growth. Supply chain constraints have pushed the start-up of the water handling project at production facility PF-2, intended to unlock incremental output, back to the second quarter of 2027, meaning organic volume growth stays on hold until then. Combining with ShaMaran gives Gulf Keystone scale and diversification across Kurdistan and Federal Iraq at precisely the point when standalone growth levers have stalled, trading near-term dilution of a single-asset identity for a broader production base better placed to absorb future security disruptions.
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Gulf Marine Services revenue rises as day rates offset lower utilisation
Gulf Marine Services (LSE:GMS) reported adjusted revenue of $151.8 million for the nine months to 30 September, up 10% from $138.3 million a year earlier, as stronger day rates and a newly deployed vessel in Latin America more than offset a drop in fleet utilisation. The London-listed operator of self-propelled, self-elevating support vessels for the oil, gas and renewables sectors saw adjusted EBITDA hold flat at $81.5 million, with shares up 3.788% to 19.18p on the update.
Average fleet utilisation fell to 80% from 88%, which the company pinned on disruption from the war in the Gulf and planned vessel preparation ahead of new contracts due to start in the first quarter. Average day rates rose 9% to $39.1k from $36k, helped by the brand-new mid-class vessel acquired earlier this year, which began operations in Latin America during the third quarter. GMS now estimates the Gulf conflict has cost it $10.1 million in lost revenue plus $1.8 million in direct incremental costs from higher war risk insurance. "GMS had a noticeable improvement in Q3 2026 financial performance, following first-half disruptions from regional Gulf conflict. This is mainly highlighted by our successful expansion into Latin America using our brand-new acquired mid-class vessel and strong average day rates," said Alex Aclimandos, Executive Chairman of Gulf Marine Services.
The numbers show a business successfully diversifying away from a single point of geopolitical risk. With day rates absorbing the utilisation hit from the Gulf conflict and the Latin America expansion already contributing, GMS is demonstrating that its earnings power is no longer hostage to any one region, a shift that should support confidence in the fleet's flat EBITDA base even as regional disruption persists.
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United Oil & Gas finds double-digit rig pool for Jamaica prospects
United Oil & Gas (AIM:UOG) has identified a double-digit pool of suitable, available rigs for its Walton-Morant licence offshore Jamaica, alongside the key long-lead equipment and a Jamaica-based logistics model needed for a future exploration campaign. The AIM-listed company, which holds the Jamaican exploration asset alongside a UK development asset, commissioned the study from NRG Well Management in September, running it in parallel with an ongoing farm-out process for the licence. Shares edged up 2.27% to 0.225p.
The study covers two targets: the Colibri prospect, carrying mean prospective resources of 406 million barrels of oil in roughly 750 metres of water, and the deeper Thunderball lead, holding 603 million barrels in roughly 1,900 metres of water. Together they represent more than 1 billion barrels of mean prospective resource that could be targeted in a single campaign. "The completion of this study is an important step forward for the Walton-Morant licence, immediate, practical and usable information on the potential delivery of a future exploration campaign," said Brian Larkin, Chief Executive.
For a company of United's size, de-risking the practical mechanics of drilling, rig availability, long-lead equipment, logistics, removes one of the key objections a farm-out partner could raise before committing capital to a billion-barrel-plus exploration target. The study's completion strengthens United's hand in ongoing farm-out talks by converting a theoretical resource estimate into a campaign that a partner can see is actually executable.
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