Gulf Keystone Petroleum has suspended its 2026 financial guidance, citing uncertainty caused by the ongoing conflict involving Iran, which has forced the company to halt operations at its key oil field in Iraqi Kurdistan. The move was first reported by Reuters.
Conflict forces halt at key oil field
The London-listed company said it is reviewing its production outlook after shutting down operations at the Shaikan field, following U.S. and Israeli strikes on Iran in late February.
Gulf Keystone had previously expected average production of 37,000 to 41,000 barrels per day in 2026, but said those projections are now under reassessment until operations resume.
Production had been trending higher before the disruption, reaching nearly 44,000 barrels per day toward the end of February, up from about 41,560 barrels per day in 2025.
Financial outlook put on hold
Beyond production, the company also suspended its broader financial forecasts for the year, including:
- Capital expenditure guidance of $40 million to $50 million
- Operating cost estimates of $55 million to $60 million
- General and administrative expense projections
The decision reflects growing uncertainty across the energy sector as geopolitical tensions disrupt supply chains and operations.
Ongoing challenges in Kurdistan
The latest disruption adds to a series of operational challenges for Gulf Keystone.
The company has faced repeated shutdowns in recent years, including interruptions tied to an arbitration dispute between Turkey and Iraq that halted Kurdish oil exports.
Exports only resumed in September 2025, after more than two years during which Gulf Keystone relied on domestic sales.
Despite the uncertainty, Gulf Keystone shares rose about 3% in early trading, supported by higher global oil prices driven by the Middle East conflict.
Rising prices also helped boost the company’s financial performance last year, with adjusted core earnings jumping 46% in 2025.
Meanwhile, competitor Genel Energy maintained its 2026 outlook, aided by the partial resumption of Iraqi oil exports through Turkey.
Big picture
Gulf Keystone’s decision underscores how quickly geopolitical shocks can reshape energy markets and corporate strategies.
With operations suspended and forecasts withdrawn, the company’s outlook now depends heavily on the duration and spread of the conflict — and on when production at Shaikan can safely restart.
