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By John Lee.

Gulf Keystone Petroleum (GKP) and ShaMaran Petroleum have agreed to merge in a transaction valuing ShaMaran's entire issued share capital at approximately $601 million. The deal will create a combined company with a pro-forma market capitalisation of more than $1 billion, focused on oil production in the Kurdistan Region of Iraq and federal Iraq.

According to the companies' joint announcement, the transaction will be structured as a statutory merger under Bermuda corporate law, with Gulf Keystone as the surviving legal entity.

ShaMaran shareholders will receive newly issued Gulf Keystone shares at an exchange ratio of 0.07533958 Gulf Keystone shares per ShaMaran share. Existing Gulf Keystone shareholders are expected to receive a special dividend of $50 million at closing, subject to board approval and applicable law. On completion, shareholders of each company will hold approximately 50% of the combined entity.

The combined company will hold working interests across four oil fields, with combined estimated 2P reserves of 323 million barrels and pro-forma working interest production of 53,000 barrels of oil per day, which the companies say would rank the combined entity in the top ten of Europe's listed independent oil producers. ShaMaran's assets are operated by HKN Energy, and ShaMaran recently announced an investment in the Hamrin field.

The boards of both companies have unanimously approved the transaction. The Lundin family, through Nemesia S.à r.l., holds approximately 25.6% of ShaMaran and has indicated its intention to vote in favour. Lansdowne Partners Austria GmbH manages approximately 13% of Gulf Keystone's shares and has similarly indicated support. The Lundin family is expected to become the largest shareholder in the combined company, with William Lundin proposed as Non-Executive Chair.

The combined company intends to uplist to the Euronext Oslo Børs main market and, in due course, discontinue its London Stock Exchange listing to provide a single liquid listing for shareholders.

Full statement from GKP and Shamaran:

Gulf Keystone to combine with ShaMaran Petroleum

Gulf Keystone and ShaMaran Petroleum Ltd. ("ShaMaran" or "SNM") announce that they have signed a Bermuda merger agreement (the "Bermuda Merger Agreement") and a combination agreement (the "Combination Agreement") to combine their businesses (the "Transaction").

The Transaction will be structured as a statutory merger under corporate law in Bermuda, where both companies are incorporated, whereby ShaMaran and Gulf Keystone will merge, with Gulf Keystone as the surviving legal entity. Completion of the Transaction is subject to customary closing conditions.

The merged company resulting from the Transaction is hereinafter referred to as the "Combined Company".

Strategic rationale

• The Transaction will create a leading independent oil producer focused on the Kurdistan Region of Iraq ("Kurdistan") and Federal Iraq ("Iraq").
• The Transaction creates scale and diversification across four world-class fields with combined estimated working interest ("WI") 2P reserves of 323 MMbbl^1,2 and additional reserve and resource upside from ShaMaran's recently announced investment in the Hamrin field.
• Pro-forma WI production of 53 kbopd^1,3, ranking in the top 10 of Europe's listed independents⁴.
• Highly complementary portfolio of four low-cost, long-life assets creating an enhanced platform for cash flow generation, shareholder distributions and growth both in the near- and medium-term, with plans to formalise the Combined Company's distributions policy around completion of the Transaction.
• ShaMaran assets operated by strategic partner HKN Energy, a proven Kurdistan operator with a strong track-record and operational approach that aligns well with Gulf Keystone's strategy.
• Pro-forma > USD 1 billion market cap company, with improved liquidity and access to financing.
• Intention to uplist to the Euronext Oslo Børs main market and in due course discontinue the London Stock Exchange listing to provide a single liquid listing for shareholders. Listing of the ShaMaran shares and ShaMaran's SDRs will cease in connection with the completion of the Transaction.
• The Transaction is supported by the largest shareholder of each company. The Lundin family, through Nemesia S.à r.l. (the "Lundin Family"), holds approximately 25.6% of ShaMaran. Lansdowne Partners Austria GmbH ("Lansdowne Partners") manages shareholdings representing approximately 13% of Gulf Keystone's issued and outstanding shares. Each has indicated that, as at the date of this announcement, it intends to vote in favour of the Transaction. The Lundin Family will become the largest shareholder in the Combined Company and will be represented by William Lundin as the proposed Non-Executive Chair.

ShaMaran shareholders, whose shares will be cancelled in the merger, will receive as consideration newly issued Gulf Keystone shares (equivalent to an aggregate amount of approximately USD 601 million for the entire issued share capital of ShaMaran) equating to 0.07533958 shares in Gulf Keystone for each share held in ShaMaran (the "Exchange Ratio"). Subject to applicable Bermuda law, the Bye-laws of Gulf Keystone and approval by the Board of Directors of Gulf Keystone, it is intended that existing shareholders of Gulf Keystone will receive a special dividend of USD 50 million at closing of the Transaction. Following completion of the Transaction, shareholders of Gulf Keystone and shareholders of ShaMaran will each own approximately 50% of the shares in the Combined Company. For further details regarding the settlement of the merger consideration for holders of ShaMaran shares ("ShaMaran Shares") and ShaMaran's Swedish depository receipts ("ShaMaran SDRs"), respectively, including the conversion of ShaMaran SDRs into ShaMaran Shares, see the section "Listings and SDR program" below.

The Board of Directors of both Gulf Keystone and ShaMaran have unanimously approved the proposed Transaction and consider it to be in the best interests of each company and their respective shareholders, as further described under "Additional information pursuant to the Swedish Takeover Rules and other regulatory matters" below.

David Thomas, Non-Executive Chair of Gulf Keystone, comments:

"The merger creates a stronger company with greater scale, a highly complementary portfolio and a stronger cash flow profile. Expected near-term cash flow from ShaMaran's assets complements the long-term growth potential of the Combined Company, enhancing our ability to invest in growth while delivering attractive and sustainable shareholder distributions. Together, we are better positioned to navigate the regional environment and to lead the next phase of value-creation as a leading independent oil producer focused on Kurdistan and Federal Iraq. The addition of Hamrin adds considerable further growth potential complementing the existing developed Kurdistan fields."

Jon Harris [pictured], CEO and Executive Director of Gulf Keystone, adds:

"We view this combination as a natural next step for both companies. Bringing together Shaikan with the adjacent Atrush and Sarsang fields will deliver synergies and gives the enlarged company a significantly stronger platform to invest in the future development of Shaikan and Hamrin. We also look forward to working with HKN Energy as an experienced operator and partner on ShaMaran's assets."

Chris Bruijnzeels, Non-Executive Chair of ShaMaran, and proposed Non-Executive Director of Gulf Keystone following completion of the Transaction, comments:

"The Gulf Keystone merger is the logical continuation of the Kurdistan consolidation story, especially given the physical proximity of our assets. The ShaMaran board has been supportive of building a larger, more efficient vehicle for some time, and we expect there will be additional opportunities for growth open to the combined company, both in Kurdistan and Federal Iraq. A larger operator will deliver superior value for both Gulf Keystone and ShaMaran shareholders."

Garrett Soden, CEO of ShaMaran and proposed Non-Executive Director of Gulf Keystone following completion of the Transaction, adds:

"ShaMaran today announced expanding into Federal Iraq with HKN Energy in the Hamrin field to create a diversified asset portfolio with an attractive production, reserves and cash flow profile. The Gulf Keystone merger amplifies that vision and is supported by the largest shareholders of both companies. We look forward to joining forces with Gulf Keystone, streamlining the combined business and building a platform for growth in Kurdistan and Federal Iraq that is backed by the Lundin Family and listed on the Oslo Stock Exchange."

Key terms of the Transaction

Based on a Gulf Keystone share price as of close 19 October 2026 of GBp 225 (equivalent to NOK 28.18 per share using a GBP/NOK exchange rate of 12.5226 as of 19 October 2026), the Exchange Ratio of 0.07533958 newly issued Gulf Keystone shares for each share held in ShaMaran and the 2,887,504,313 currently outstanding ShaMaran Shares (settlement of long-term incentive plans of ShaMaran will be in cash), the equity value of ShaMaran in the Transaction is NOK 5.7 billion (equivalent to USD 601 million using a NOK/USD exchange rate of 9.4113 as of 19 October 2026), corresponding to a price per share of NOK 1.96.

The merger consideration to ShaMaran shareholders represents a premium of 22.9% to the ShaMaran closing share price as of close 19 October 2026, and a premium of 28.6% and 32.2% based on 30 and 90 trading days' VWAP as of 19 October 2026, respectively (based on ShaMaran SDRs trading on Nasdaq First North Growth Market Stockholm). The share price of ShaMaran on 19 October 2026 does not reflect the investment in the Hamrin Field, which is announced today.

Adjusted for the special dividend of USD 50 million that Gulf Keystone intends to pay to its existing shareholders on closing of the Transaction, equivalent to USD 0.23 per share, the consideration to ShaMaran shareholders represents a premium of 13.5% to the ShaMaran closing share price as of close 19 October 2026, and a premium of 17.5% and 20.1% based on 30 and 90 trading days' VWAP as of 19 October 2026, respectively (based on ShaMaran SDRs trading on Nasdaq First North Growth Market Stockholm).

Following completion of the Transaction, shareholders of Gulf Keystone and shareholders of ShaMaran will each own 50% of the shares in the Combined Company.

The number of shares issued to ShaMaran shareholders as part of the merger consideration will be based on the number of ShaMaran Shares outstanding at the time of completion of the Transaction, excluding any shares held in treasury. Under the assumption that the number of shares outstanding at completion of the Transaction is the same as at the date of this announcement, the aggregate number of newly issued ordinary shares in Gulf Keystone will be 217,543,362. On this basis, the total number of shares in the Combined Company following completion of the Transaction will be 435,086,735.

No fractional Gulf Keystone shares shall be delivered as merger consideration and the number of Gulf Keystone shares to be issued and delivered in accordance with the Transaction shall be rounded down to the nearest whole share. Any excess Gulf Keystone shares not allotted as a result of rounding shall be issued to and sold by a third party appointed by GKP, with the net proceeds distributed proportionately among the affected holders of ShaMaran Shares or ShaMaran SDRs.

Shareholder approval and support

The Transaction is subject to approval at special general meetings ("SGMs") of Gulf Keystone and ShaMaran, with (i) in the case of Gulf Keystone, a majority of not less than three-fourths (75%) of the votes cast at the relevant SGM, and (ii) in the case of ShaMaran, not less than a two-thirds (66.67%) majority of the votes cast at the relevant SGM.

The Lundin Family, the largest shareholder of ShaMaran, holds approximately 25.6% of ShaMaran's issued and outstanding shares, including shares represented by SDRs. Lansdowne Partners manages shareholdings representing approximately 13% of Gulf Keystone's issued and outstanding shares. Each has informed ShaMaran and Gulf Keystone, respectively, that it supports the Transaction and that, as at the date of this announcement, it intends to vote its shares in favour of the Transaction at the relevant SGM.

The SGMs are expected to be held on or about 22 December 2026. The notices to convene the SGMs will be published through separate press releases. Gulf Keystone and ShaMaran will publish a merger information document in accordance with the Stock Market Self-Regulation Committee's (Sw. Aktiemarknadens självregleringskommitté) takeover rules for certain trading platforms (the "Swedish Takeover Rules") on or around 1 December 2026.

Financing

The completion of the Transaction is not conditional upon any financing, as the merger consideration in its entirety comprises newly issued ordinary shares in Gulf Keystone.

The two companies will operate independently until the Transaction has been completed. Until such date, the companies will independently finance their respective activities. It is contemplated that ShaMaran will refinance its 2029 maturity bond with approx. USD 144 million outstanding through issuance of a new bond. ShaMaran will commence marketing of its bond today. In addition, Gulf Keystone is considering new debt financing through a potential bond issue to finance some of its capital expenditures related to the further development of Shaikan and is expecting to commence marketing shortly after completion of ShaMaran marketing. These transactions are contemplated in the near term and will be announced to the market in due course, ensuring clear market and best execution for each bond.

Due diligence

When preparing for the Transaction, the companies have conducted customary due diligence reviews of certain business, financial, commercial and legal information relating to ShaMaran and Gulf Keystone, respectively. During the due diligence reviews, no material information that had not previously been made public and that could constitute inside information in relation to ShaMaran or Gulf Keystone, respectively, was provided, other than ShaMaran's investment in a 25% stake in HKN Hamrin Ltd. and the contemplated bond issues, all of which is announced in connection with the announcement of the Transaction.

Listings and SDR program

Gulf Keystone's shares are primary listed in the equity shares (transition) category of the Official List of the UK Financial Conduct Authority (the "FCA") and traded on the Main Market for listed securities of the London Stock Exchange and secondary listed on Euronext Growth Oslo. ShaMaran's Shares have a primary listing on Euronext Growth Oslo, and ShaMaran SDRs are secondary listed on Nasdaq First North Growth Market Stockholm.

In exchange for their ShaMaran Shares or ShaMaran SDRs, the ShaMaran shareholders and holders of ShaMaran SDRs will receive consideration in the form of newly issued shares in Gulf Keystone. All shareholders in ShaMaran holding shares in the Norwegian central securities depository (Verdipapirsentralen) ("VPS") will receive Gulf Keystone shares directly through VPS.

Between the date of this announcement and completion of the Transaction, ShaMaran intends to cover conversion costs for holders of ShaMaran SDRs who convert ShaMaran SDRs into ShaMaran Shares registered with VPS during such period. Holders of ShaMaran SDRs who have converted their ShaMaran SDRs into ShaMaran Shares in VPS prior to completion of the Transaction will receive newly issued Gulf Keystone shares directly in VPS in accordance with the Exchange Ratio. Holders of ShaMaran SDRs who have not converted their ShaMaran SDRs into ShaMaran Shares in VPS prior to completion of the Transaction will instead receive unlisted Swedish depository receipts, each representing a newly issued share in Gulf Keystone ("GKP SDR"). Following completion of the Transaction, holders of GKP SDRs will be able to convert their GKP SDRs into Gulf Keystone shares in VPS (the "SDR Program"). For the first 60 days following completion of the Transaction, Gulf Keystone shall cover conversion costs for holders of GKP SDRs who convert their GKP SDRs into Gulf Keystone shares registered with VPS. The SDR Program is a temporary solution that is expected to be terminated no later than 12 months after the issuance of the GKP SDRs. Upon termination of the SDR Program, all holders of GKP SDRs who have not yet converted their GKP SDRs into ordinary shares in Gulf Keystone will automatically have their GKP SDRs redeemed by Gulf Keystone whereby the shares in Gulf Keystone that the GKP SDRs represent will be sold in the market and the net average sales proceeds will then be paid pro rata to the previous holders of such GKP SDRs. Further details and practical information will be provided in due course.

It is the intention of Gulf Keystone to move its primary listing and uplist to the main list of Euronext Oslo Børs and in due course discontinue the London listing to provide a single liquid listing for shareholders. Further details regarding timing will be provided to the market in due course. The respective listings of the ShaMaran Shares and ShaMaran SDRs will cease in connection with the completion of the Transaction.

The Transaction constitutes a reverse takeover for Gulf Keystone under the UK Listing Rules. As a result, Gulf Keystone expects that the existing listing of its shares in the equity shares (transition) category of the Official List of the FCA will be cancelled upon completion of the Transaction. Unless Gulf Keystone applies for admission of the Combined Company's shares to a different listing category of the Official List of the FCA, the shares of the Combined Company will not be admitted to the Official List of the FCA or to trading on the Main Market for listed securities of the London Stock Exchange.

Indicative timetable⁵

On or around 1 December 2026 - Merger information document published
On or around 22 December 2026 - SGMs in Gulf Keystone and ShaMaran

Following shareholder approval and satisfaction or waiver of the applicable conditions to closing, the parties will submit an application to the Registrar of Companies in Bermuda for registration of Gulf Keystone as the surviving company of the merger. The merger will become effective upon the issuance of the certificate of merger by the Registrar of Companies in Bermuda, at which time the Transaction will complete, which is expected to occur mid-2027.

Additional information pursuant to the Swedish Takeover Rules and other regulatory matters

Overview of the Combined Company

Business overview

The Combined Company will be a leading independent oil producer focused on Kurdistan and Iraq with a highly complementary portfolio of four low-cost, long-life assets. Gulf Keystone's operated position in the Shaikan Field (61.5% WI¹) will be combined with ShaMaran's non-operated positions in the Atrush (50% WI) and Sarsang (18% WI) fields in Kurdistan, as well as ShaMaran's announced investment in the Hamrin field (25% shareholding in HKN Hamrin Ltd., the joint venture company holding 100% of the Hamrin development and production contract ("DPC")). The Combined Company will benefit from increased scale and diversification, with combined estimated WI 2P reserves of 323 MMbbl^1,2 and pro-forma WI production of 53 kbopd^1,3 ranking in the top 10 of Europe's listed independents⁴.

Synergies

The Transaction is expected to create value for the shareholders of the Combined Company through annual G&A synergies estimated at up to USD 5 million per annum resulting from the further optimisation of Gulf Keystone's and ShaMaran's lean corporate costs.

Board of directors, management and employees

An experienced Board of Directors ("Board") will be proposed to shareholders reflecting the ownership of the Combined Company. William Lundin, CEO of International Petroleum Corp. and Lundin Family representative on ShaMaran's current Board of Directors, will be proposed for election as Non-Executive Chair with Gulf Keystone's current Chair David Thomas continuing as Vice Chair. Chris Bruijnzeels, ShaMaran's Chair of the Board, Garrett Soden, ShaMaran's CEO, Marianne Daryabegui, current GKP Board member, and Julien Balkany, current GKP Board member, will be proposed for election as independent Non-Executive Directors. Following the Transaction, CEO Jon Harris and CFO Gabriel Papineau-Legris will continue in their roles for the merged entity, with Jon Harris remaining on the Board.

There are currently no decisions on any material changes to Gulf Keystone's or ShaMaran's employees or to the existing organisation and operations, including the terms of employment and locations of the business.

Ownership structure

Following completion of the Transaction, shareholders of Gulf Keystone and shareholders and SDR holders of ShaMaran will each own approximately 50% of the shares in the Combined Company. The Lundin family will become the largest shareholder in the Combined Company with a 12.8% stake.

Preliminary combined financial information

The preliminary combined financial information and other estimated financial effects set forth below are provided for illustrative purposes only. The preliminary combined financial information in the table below does not constitute pro forma financial information and has not been reviewed by the companies' auditors. Financial information for Gulf Keystone and ShaMaran has been based on unaudited figures for the period 1 January - 30 June 2026. Accordingly, this information may differ from the pro forma financial information that will be included in the merger information document. Other estimated financial future effects set forth in this announcement are based on hypothetical estimates and should not be viewed as pro forma information.

Key unaudited financial information under IFRS as reported by each company - in summary for the period 1 January - 30 June 2026

Amounts in USD million	Gulf Keystone	ShaMaran	Combined Company
Revenue	57.8	55.8	113.6
Profit after tax	12.9	25.8	38.7
Total Assets	635.9	473.6	1,109.5
Equity	478.6	274.2	752.8

Recommendation from the Board of Directors of ShaMaran

ShaMaran's Board of Directors considers the merger consideration to be fair from a financial point of view and unanimously recommends the shareholders and ShaMaran SDR holders to vote in favour of the Transaction at the SGM in ShaMaran, to be held on or about 22 December 2026.

Recommendation from the Board of Directors of Gulf Keystone

Gulf Keystone's Board of Directors considers the merger consideration to be fair from a financial point of view and unanimously recommends the shareholders of Gulf Keystone to vote in favour of the Transaction at the SGM in Gulf Keystone, to be held on or about 22 December 2026.

Shareholdings between Gulf Keystone and ShaMaran

Gulf Keystone does not hold or control any shares in ShaMaran or any other financial instruments that give Gulf Keystone a financial exposure equivalent to a shareholding in ShaMaran. Neither Gulf Keystone nor any of its closely related parties have acquired any shares in ShaMaran during the last six months prior to the announcement of the Transaction.

ShaMaran does not hold or control any shares in Gulf Keystone or any other financial instruments that give ShaMaran a financial exposure equivalent to a shareholding in Gulf Keystone. Neither ShaMaran nor any of its closely related parties have acquired any shares in Gulf Keystone during the last six months prior to the announcement of the Transaction.

Pre-merger undertakings

Gulf Keystone and ShaMaran, respectively, have undertaken to use their reasonable best efforts to complete the Transaction on the terms as set out in the Bermuda Merger Agreement and the Combination Agreement.

During the period from approval of the Transaction by the SGMs in Gulf Keystone and ShaMaran, respectively, until completion of the Transaction, Gulf Keystone and ShaMaran shall, and shall cause each member of their respective groups to, carry on its business in the ordinary course of business and in the same manner as heretofore conducted and in compliance with all applicable laws and regulations. Without limiting the generality of the foregoing, during such period, neither Gulf Keystone nor ShaMaran shall, and each shall ensure that no member of its group does, without the prior written consent of the other company (such consent not to be unreasonably withheld or delayed), take any of the following actions:

• amend its organisational documents or change its share capital (except for the increase in Gulf Keystone's authorised share capital and the consequential amendment to Gulf Keystone's bye-laws contemplated by the Combination Agreement), or issue, split, reclassify, sell, redeem, repurchase or encumber any shares in any group company;
• declare or pay any dividend or make any other value transfer to shareholders, directors or members of management, other than (i) dividends of up to USD 25,000,000 per company if completion has not occurred by 15 March 2027, (ii) an additional dividend of up to USD 25,000,000 per company if completion has not occurred by 23 August 2027, and (iii) the special dividend of USD 50,000,000 by Gulf Keystone to its existing shareholders prior to completion;
• make or agree to any material change to the terms of employment of senior management, materially change general employment terms or payroll, introduce or amend any incentive scheme or bonus arrangement (other than ordinary course bonuses at the boards' discretion), or make any material hiring or workforce reduction (provided that Gulf Keystone shall be permitted to make hires required to fulfil its capital expenditure program);
• waive, settle or compromise any threatened or actual litigation or dispute, other than for cash amounts not exceeding USD 5,000,000 (or equivalent) per matter, amounts covered by existing insurance, or settlements involving no payment and no material obligation;
• take, or fail to take, any action that would, or would reasonably be likely to, prevent or materially delay or impede satisfaction of the conditions for completion of the Transaction;
• acquire, sell or agree to acquire or sell any material shares, assets or business (other than ShaMaran's investment in a 25% stake in HKN Hamrin Ltd.), enter into any material agreement or commitment outside the ordinary course of business, create any encumbrance over any material asset, or terminate or amend any material agreement; or
• incur any financial indebtedness other than the new bonds intended to be issued by each of Gulf Keystone and ShaMaran, incur any other material obligation or liability (including guarantees or indemnities), waive any material claim, or make any loan or capital contribution to a third party.

The foregoing restrictions are subject to certain exceptions, being (i) actions required by applicable law, (ii) actions expressly permitted or required by the Combination Agreement, (iii) actions in the ordinary course of business consistent with past practice, (iv) completion or performance of legally binding obligations under contracts entered into in the ordinary course prior to the date of the Combination Agreement, (v) actions in furtherance of an approved work program, budget or authority for expenditure, (vi) actions in response to a disaster, emergency, or health, safety or environmental concern, (vii) actions in response to an event beyond the companies' control with a material adverse effect on the relevant company, (viii) with respect to ShaMaran, any action in connection with ShaMaran's investment in a 25% stake in HKN Hamrin Ltd. (including funding HKN Hamrin Ltd. by loans or capital contributions) and/or the senior unsecured bond that ShaMaran intends to issue, (ix) the exercise, vesting or settlement of options, restricted share units or other awards outstanding at the date of the Combination Agreement under a company's incentive plans in accordance with their existing terms, and (x) performance of a contractual obligation to a director or employee existing and disclosed to the other company prior to the date of the Combination Agreement.

During the period from approval of the Transaction by the SGMs in Gulf Keystone and ShaMaran, respectively, until completion of the Transaction, each of Gulf Keystone and ShaMaran shall, to the extent legally permissible, promptly notify the other company if it becomes aware of any fact, circumstance, act, matter or other event which has occurred, or is reasonably likely to occur, and which constitutes a breach of, or is inconsistent with, its obligations under the Combination Agreement, including the pre-merger undertakings described above.

Conditions for the Transaction

In addition to approvals at each company's SGM, completion of the Transaction is conditional upon satisfaction of the following conditions, which are for the benefit of both Gulf Keystone and ShaMaran (the "Mutual Conditions"):

• approval of the Bermuda Merger Agreement, the Combination Agreement and the Transaction by the SGMs of Gulf Keystone and ShaMaran, respectively;
• that all permits, approvals, decisions and other measures from authorities or similar bodies required for the Transaction have been obtained, including approval by the government and/or relevant ministry of the Kurdistan Regional Government, in each case on terms acceptable to the respective company;
• no decision by Euronext Oslo Børs to delist the Gulf Keystone shares from Euronext Growth Oslo based on Gulf Keystone's report on continued listing cf. Euronext Growth Oslo Rule Book II section 3.16;
• that the Transaction has not, wholly or partially, been rendered impossible or significantly impeded as a result of legislation or other regulation, a court ruling, a decision by a regulatory authority or any similar circumstance;
• that neither Gulf Keystone nor ShaMaran has breached its pre-merger undertakings during the period from approval of the Transaction by the SGMs of Gulf Keystone and ShaMaran, respectively, until completion, in a manner that would have a material adverse effect on the Transaction or the Combined Company; and
• ShaMaran's investment in a 25% stake in HKN Hamrin Ltd. having been completed prior to or simultaneously with completion of the Transaction.

Completion of the Transaction is further conditional upon satisfaction of the following conditions, which are for the benefit of Gulf Keystone only (the "Gulf Keystone Conditions"):

• no Material Adverse Change⁶ having occurred in respect of ShaMaran;
• there is no (i) declaration by any bond trustee under any outstanding bond of ShaMaran or any member of its group that the outstanding amounts thereunder, together with accrued interest and any other amounts outstanding, are immediately due and payable prior to their stated maturity as a result of an event of default which is continuing under such bond, or (ii) mandatory redemption pursuant to any such bond having occurred, in each case which has had or could reasonably be expected to have a material adverse effect on the financial position of ShaMaran or the Combined Company;
• no information made public by ShaMaran, or disclosed by ShaMaran to Gulf Keystone, being inaccurate, incomplete or misleading, and ShaMaran having made public all information that should have been made public by ShaMaran; and
• the companies not having received valid notices from holders of Gulf Keystone shares and/or ShaMaran Shares regarding payment of the fair value of their shares under the Merger Agreement in respect of a number of Gulf Keystone shares and ShaMaran Shares which, in aggregate, represents 1.25% or more of the aggregate number of issued and outstanding Gulf Keystone shares and ShaMaran Shares.

Completion of the Transaction is further conditional upon satisfaction of the following conditions, which are for the benefit of ShaMaran only (the "ShaMaran Conditions"):

• no Material Adverse Change⁶ having occurred in respect of Gulf Keystone;
• there is no (i) declaration by any bond trustee under any outstanding bond of Gulf Keystone or any member of its group that the outstanding amounts thereunder, together with accrued interest and any other amounts outstanding, are immediately due and payable prior to their stated maturity as a result of an event of default which is continuing under such bond, or (ii) mandatory redemption pursuant to any such bond having occurred, in each case which has had or could reasonably be expected to have a material adverse effect on the financial position of Gulf Keystone or the Combined Company;
• no information made public by Gulf Keystone, or disclosed by Gulf Keystone to ShaMaran, being inaccurate, incomplete or misleading, and Gulf Keystone having made public all information that should have been made public by Gulf Keystone; and
• no change in the number of authorised or issued shares or share capital of Gulf Keystone having occurred (other than in order to facilitate for the issuance of the merger consideration) since the date of the Combination Agreement and no instruments, including options and convertible loans, giving rights to shares if Gulf Keystone have been issued or granted from the date of the Combination Agreement (excluding granted option rights with vesting, in the ordinary course, consistent with past practice, relating to long-term incentive programs or deferred bonuses).

If the conditions set out in this section have not been satisfied (or waived, where capable of waiver) and completion of the Transaction has not taken place on or before 31 December 2027, or if required by ShaMaran in order to accept a superior offer for ShaMaran prior to the date of the ShaMaran SGM, the Transaction will not be implemented and the Bermuda Merger Agreement and the Combination Agreement shall cease to have any further effect, provided, however, that the Transaction will only be discontinued and the Bermuda Merger Agreement and the Combination Agreement shall only cease to have any further effect, to the extent permitted by the Swedish Takeover Rules, if the relevant matter is of material importance to the Transaction or the Combined Company. The Mutual Conditions may be waived only by written agreement of both Gulf Keystone and ShaMaran, the Gulf Keystone Conditions may only be waived by Gulf Keystone and the ShaMaran Conditions may only be waived by ShaMaran, provided that no condition relating to (i) compliance with the Bermuda Companies Act 1981, (ii) approval of the Bermuda Merger Agreement by the shareholders of either company or (iii) any other requirement of applicable law, may be waived.

The Board of Directors of both Gulf Keystone and ShaMaran shall, subject to applicable law, be entitled to jointly decide to postpone the last date for fulfilment of the conditions from 31 December 2027 to a later date.

Approval from authorities

As described in the conditions above, the completion of the Transaction is conditional upon, inter alia, that all permits, approvals, decisions and other measures from authorities or similar bodies required for the Transaction have been obtained, including approval by the government and/or relevant ministry of the Kurdistan Regional Government, in each case on terms acceptable to the respective company.

According to Gulf Keystone's and ShaMaran's current assessment, the Transaction will require approval by the government and/or relevant ministry of the Kurdistan Regional Government. Gulf Keystone and ShaMaran have initiated the work on filings relevant for the Transaction and expect to obtain the approvals within 6 - 9 months of the date of this announcement.

Effectiveness of the Merger and statutory Bermuda rights

The Transaction will become effective upon the issuance of a certificate of merger by the Registrar of Companies in Bermuda. Upon the Merger becoming effective, the undertaking, property and liabilities of ShaMaran will vest in Gulf Keystone as the surviving company of the merger and ShaMaran will cease to exist as a separate legal entity. This is expected to occur mid-2027. The companies will announce the date on which the Registrar of Companies in Bermuda is expected to register the Transaction at a later stage.

The last day of trading in the ShaMaran Shares on Euronext Growth Oslo and the ShaMaran SDRs on Nasdaq First North Growth Market is expected to be the same day as the registration of the Transaction by the Registrar of Companies in Bermuda and the first day of trading on Euronext Growth Oslo of the newly issued Gulf Keystone shares is estimated to take place the first trading day following the day of the registration of the Transaction, subject to consent from the Oslo Stock Exchange.

Following the last day of trading in ShaMaran SDRs and in conjunction with the registration of the Transaction by the Registrar of Companies in Bermuda, ShaMaran will confirm its request to DNB Bank ASA, Sweden Branch to terminate the ShaMaran SDR program. Upon termination, all remaining holders of ShaMaran SDRs will receive consideration in the form of newly issued Gulf Keystone shares or GKP SDRs.

The Transaction is a share-for-share statutory merger. Notwithstanding the share-for-share structure, section 106 of the Bermuda Companies Act recognises that individual shareholders of either company who do not vote in favour of the merger have the right to claim the fair value of their shares in cash rather than shares in the Combined Company. In light of this statutory right, it may be that one or more shareholders claim the fair value of their shares in cash. Despite the share-for-share structure of the Transaction, Gulf Keystone will accommodate that right up to the threshold set out in the Combination Agreement. Payments of any and all claims up to the cap will be made from Gulf Keystone's own funds. For more information, please refer to section "Conditions for the Transaction". The Board of Directors of Gulf Keystone and ShaMaran have, in accordance with the Bermuda Merger Agreement, determined that the fair value of each share in Gulf Keystone is USD 2.99 and that the fair value of each share in ShaMaran is USD 0.186.

Applicable law and disputes

The Swedish Stock Market Self-Regulation Committee's takeover rules for certain trading platforms and the Swedish Securities Council's rulings and statements regarding the interpretation and application of the Swedish Takeover Rules apply to the Transaction. Gulf Keystone has, in accordance with the Swedish Takeover Rules, undertaken towards Nasdaq Stockholm to comply with the Swedish Takeover Rules and to submit to any sanctions that Nasdaq Stockholm may impose for a breach of the Swedish Takeover Rules. Swedish law shall apply to, and any dispute relating to or arising in connection with, the agreements entered into between Gulf Keystone and the shareholders of ShaMaran in connection with the Transaction shall be settled exclusively by the Swedish courts, with the District Court of Stockholm as the court of first instance. However, each shareholder is entitled to instead elect arbitration against Gulf Keystone under the Arbitration Rules of the SCC Arbitration Institute, in which case the seat of arbitration shall be Stockholm and the language of the proceedings shall be Swedish.

Since neither Gulf Keystone nor ShaMaran has its registered office in the United Kingdom, the Channel Islands or the Isle of Man then the City Code on Takeovers and Mergers (the "Takeover Code") does not apply to the Transaction, and nor will the Takeover Code apply to the Combined Company following completion of the Transaction.

Public disclosures

ShaMaran is subject to the disclosure obligations under the rules and regulations applicable to the admission of its shares to trading on Euronext Oslo Growth and Nasdaq First North Growth Market Stockholm. Details of announcements and information published by ShaMaran in accordance with these disclosure requirements are available at: https://shamaranpetroleum.com/news/.

So far as Gulf Keystone is aware, ShaMaran has complied with the disclosure requirements applicable to it.

Advisors

SB1 Markets AS is acting as financial advisor and Advokatfirmaet BAHR AS is acting as coordinating lead legal advisor under Norwegian and Swedish law, Carey Olsen is acting as legal advisor under Bermuda law to Gulf Keystone and Herbert Smith Freehills Kramer LLP are acting as legal advisor under English law. Canaccord Genuity Limited and Peel Hunt LLP are Gulf Keystone's retained corporate brokers in the UK.

Pareto Securities AS is acting as financial advisor and Advokatfirmaet Thommessen AS is acting as coordinating lead legal advisor under Norwegian law, Gernandt & Danielsson Advokatbyrå is acting as legal advisor under Swedish law and Conyers Dill & Pearman Limited is acting as legal advisor under Bermuda law to ShaMaran.

Conference call and investor presentation:

Gulf Keystone will host a presentation for investors and analysts at 11:00 CEST today (20 October 2026).

Sell-side analysts are requested to join the meeting via the dial-in details provided to them separately and ask questions verbally. Investors are encouraged to submit written questions via the webcast.

Link to webcast: https://brrmedia.news/GKPSNM2026

Further information, including the investor presentation and a replay of the conference call will be provided on www.gulfkeystone.com and www.shamaranpetroleum.com.

1. Based on a Gulf Keystone WI in Shaikan of 61.5%. Current WI of 80% subject to expected reduction to 61.5% post implementation of 2nd Shaikan PSC amendment.
2. As of 31 December 2025. 2P reserves related to the Shaikan field are internally estimated by Gulf Keystone. ShaMaran resources are estimated by McDaniel & Associates Consultants Ltd.
3. Gulf Keystone WI production based on current gross well capacity of approximately 45,000 bopd. ShaMaran WI production based on estimated gross restart production rate of 40-44K bopd at Atrush and 20-24K bopd at Sarsang (post rerouting of production to smaller Early Production Facilities).
4. Among European-listed oil and gas independents, with peer production reflecting the period of each company's latest financial report
5. All dates are preliminary and may be subject to change
6. "Material Adverse Change" means any event, change, occurrence, effect or fact that, individually or in the aggregate with other events, changes, occurrences, effects or facts, results in production from either the Shaikan Field in Kurdistan ("GKP Asset") or the Atrush Block and Sarsang Block in Kurdistan ("SP Assets") being below the MAC Daily Threshold (meaning, with respect to the GKP Asset, a WI production of less than 10,000 barrels of oil per day ("bopd"), and for the SP Assets, an aggregate WI production of less than 10,000 bopd) for each day in a continuous period of 120 days or more, as a result of any physical damage occurring to all or any part of the GKP Asset or SP Assets, respectively, provided that any production shut-in, interruption or physical damage occurring, existing or publicly disclosed prior to the signing date of the Combination Agreement, and the continuation thereof, shall be disregarded.

(Source: GKP)

By John Lee.

Imported food and medicine are to be exempt from customs duties in Iraq, with effect from 7 October 2026. The measure was approved at the 23rd regular session of the Council of Ministers, chaired by Prime Minister Ali al-Zaidi on Wednesday.

According to the Prime Minister's Office, the exemption was introduced to protect food and health security in the country.

(Source: Prime Minister's Office)

By John Lee.

DNO ASA confirmed on Friday morning it does not intend to make an offer to acquire Genel Energy plc, following the Genel board's refusal to engage with its proposal. Genel shares fell more than 10% on the news.

DNO had proposed 69 pence per share in cash, with a cash-and-share alternative. The Norwegian oil company said the proposal would have:

• delivered a substantial premium to Genel's undisturbed share price
• provided certainty of value regardless of the outcome of Genel's own offer for Capricorn Energy plc
• offered Genel shareholders a liquidity event against a backdrop of poor trading liquidity in Genel shares
• given shareholders electing for DNO shares participation in a diversified, growth-oriented business with an established dividend track record
• created a stronger combined company in the Kurdistan Region of Iraq

DNO said the Genel board demonstrated no willingness to engage despite repeated invitations, and expressed disappointment that the board was unwilling to extend the 4 September deadline to explore whether a mutually acceptable proposal could have been reached.

DNO noted that the directors of Capricorn, in the context of DNO Bidco AS's recommended offer for that company, confirmed they do not currently intend to ask the Court to sanction the scheme of arrangement relating to Genel's offer for Capricorn.

Under Rule 2.8 of the Takeover Code, DNO reserves the right to reopen discussions in certain circumstances, including if a third party announces a firm intention to make an offer for Genel, if Genel announces a Rule 9 waiver proposal or a reverse takeover, or if there is a material change of circumstances as determined by the Panel on Takeovers and Mergers.

(Source: DNO)

By John Lee.

Private universities, colleges, and institutes in Iraq subject to tax assessment are to be required to settle outstanding income tax and direct withholding tax liabilities, under a decision by the Council of Ministers.

Institutions that pay their principal tax liability and complete the tax assessment process within four working months of the Cabinet decision's issuance will receive a 100% waiver on penalties and surcharges. Those that complete payment and assessment in the following four-month period will receive a 50% waiver.

Any institution that fails to complete the tax assessment and payment process within the specified periods will not benefit from the exemption, and existing penalties and legal measures will be applied.

The Ministry of Higher Education and Scientific Research is to take legal and administrative action against private universities, colleges, and institutes that do not comply with their tax assessment obligations.

(Source: Council of Ministers)

By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

The Iraqi Dinar Caught in the Crossfire: What a Trump-Iran Military Conflict Would Mean for Iraq's Currency

The Middle East is once again on the edge. The United States has assembled its largest concentration of naval and air power in the region since the 2003 invasion of Iraq, two carrier strike groups, dozens of warships, and hundreds of warplanes now positioned within striking distance of Iran.

Negotiations between Trump's envoy Steve Witkoff and Iranian officials in Geneva have reportedly yielded "significant progress", but the ultimate outcome may hinge on whether Iran is prepared to offer concessions significant enough for Trump to call a victory. With diplomacy fragile and military options on the table, one often-overlooked casualty of any escalation would be Iraq's currency, the dinar.

Iraq: The Battlefield Between Two Worlds

To understand what a US-Iran military conflict would do to the Iraqi dinar, you have to first understand Iraq's precarious geopolitical position. The country is simultaneously a close security partner of the United States and an economy deeply enmeshed with Iran. Iraq spends roughly $900 million monthly on Iranian goods, a major portion of this historically going to electricity and gas. Iranian-backed militias are embedded within Iraq's state institutions. US troops remain on Iraqi soil. Iraq's government walks a tightrope between US alliance and Iranian influence, and its currency walks the same tightrope with it.

The Iraqi dinar's journey has been one of the most dramatic in monetary history. The currency dropped substantially from 3 IQD per USD before 1991 to about 1,310 IQD per USD today. Decades of war, sanctions, and corruption have slowly eroded its value. In recent years, Iraq has made modest progress: the International Monetary Fund (IMF) has provided structural guidance, oil revenues have been strong, and the Central Bank of Iraq (CBI) has maintained a managed peg to the dollar. Iraq's position as OPEC's second-largest oil producer and strong international support drive steady economic improvements. But all of that relative stability would face severe pressure the moment US bombs begin falling on Iranian soil.

Scenario One: A Limited Strike

The most likely immediate military scenario, and the one that has been most openly discussed in Washington, involves a targeted, time-limited campaign against Iranian military and nuclear infrastructure. Trump may order a targeted attack on select military sites inside Iran to pressure the country's leaders into agreeing to an acceptable deal, demonstrating US threats of action are real. The targets could include ballistic missile sites, facilities connected to Iran's nuclear program, or buildings used by the Islamic Revolutionary Guard Corps.

In this scenario, the Iraqi dinar's fate would be shaped by several competing forces. On one hand, oil prices would almost certainly spike, and for Iraq, higher oil prices are a lifeline. Iraq's state budget is overwhelmingly dependent on petroleum revenues, and a sudden surge in global crude prices triggered by conflict fears would, in theory, fill state coffers. A better-funded government can defend its exchange rate more effectively.

On the other hand, a limited strike would almost certainly trigger Iranian retaliation, and Iraq would be squarely in the blast radius. Iran's kinetic retaliation plan relies on a reconstituted arsenal of over 3,000 ballistic missiles capable of striking US bases and allied territory across the region, and many of those bases are in Iraq. US embassies in Iraq and other Arab states began to evacuate personnel in response to Iranian threats on American bases as far back as the lead-up to last year's Operation Midnight Hammer. Iranian-backed Iraqi militias like Kataib Hezbollah have already issued explicit warnings: leader Ahmad al-Hamidawi warned that any strike on Iranian soil would trigger a "total war" involving militias across the Levant.

For the dinar, this translates to a severe confidence crisis. When violence erupts on Iraqi soil, even if Iraq is not the primary combatant, foreign capital flees, domestic savers rush to convert dinars to dollars, and the black market premium widens dramatically. The Central Bank of Iraq, which sells dollars at auction to defend its peg, would come under enormous pressure. Its foreign exchange reserves, while substantial, are not unlimited, and a sustained capital flight could force a de facto devaluation.

Scenario Two: Sustained Military Campaign or Regime Change

Current contingency planning in the Pentagon is configured for sustained, weeks-long operations against Iran if so ordered by Trump. A broader campaign aimed at degrading Iran's military capacity, or worse, one that tips into regime change, would represent a qualitatively different shock to the Iraqi economy.

Iraq's energy dependence on Iran is the most acute vulnerability. If war disrupts those supply lines, through Iranian cut-offs, infrastructure damage, or US sanctions enforcement, Iraqi power grids would come under renewed pressure. Blackouts would damage industry, commerce, and ordinary life. Economic output would contract sharply, and the government's ability to pay civil servant salaries and maintain social order would erode. In such conditions, the dinar would face significant downward pressure regardless of what the oil price is doing.

There is also the migration and refugee dimension. A major war with Iran, a country of over 90 million people, could produce refugee flows that would dwarf anything the region has seen since 2003. Iraq, which shares a long border with Iran and already hosts displaced populations from earlier conflicts, would be on the front lines of that humanitarian wave. The fiscal and social cost could be immense.

For currency markets, the historical parallel is instructive. During the 2003 US invasion of Iraq itself, Iraqi currency markets experienced extreme dislocations. Capital flight, hoarding of hard currency, and the collapse of normal economic activity all preceded any formal devaluation. A war next door, one that also engulfs Iraqi militias and potentially Iraqi territory, could produce similar dynamics even without Iraq being the primary target.

The Oil Price Paradox

One of the most important, and often misunderstood, dynamics in this scenario is the double-edged nature of oil prices. A major US-Iran conflict would almost certainly send crude prices sharply higher, at least initially. Iran is a significant oil producer, and any conflict that threatens the Strait of Hormuz, through which roughly 20% of the world's oil supply passes, would trigger immediate panic buying in global energy markets.

For Iraq, this creates a cruel paradox. Higher oil revenues would, in theory, improve the government's fiscal position and its ability to defend the dinar. But the same conflict that pushes oil prices up would simultaneously disrupt Iraq's own oil export infrastructure, close off Iranian energy imports that keep the lights on, trigger militia violence, scare away foreign investment, and force emergency spending on security. The net effect on the dinar would almost certainly be negative, as the costs outweigh the revenue windfall.

The Sanctions and Banking Dimension

Any escalation would also intensify the already complex sanctions environment that shapes how the Iraqi economy interfaces with the global financial system. The Trump administration focuses on selective sanctions against Iraqi banks while conditioning waivers for Iranian energy purchases. This policy could soon affect Iraq's economic partnerships and currency stability. Banks found to be facilitating Iranian transactions face being cut off from dollar-clearing networks, a potentially devastating punishment in an economy that relies so heavily on the greenback.

This creates a further squeeze on the dinar. If Iraqi banks are penalised for maintaining ties with Iran, ties that are partly economically necessary and partly politically unavoidable, the result is a fragmentation of Iraq's banking sector, reduced access to dollar liquidity, and a wider spread between the official and parallel exchange rates. Ordinary Iraqis, who already prefer to hold savings in US dollars rather than dinars, would accelerate that dollarisation, further undermining confidence in the local currency.

Historical Lessons: What 2003 Tells Us

The 2003 US invasion of Iraq offers a partial precedent, though the situations differ significantly. In the immediate aftermath of the invasion, the Iraqi currency market experienced extreme volatility. The old Saddam-era dinar was eventually replaced with a new currency, and a managed peg to the dollar was established. Over time, with massive oil revenues and international support, the new dinar stabilised.

But the early years of post-invasion Iraq were characterised by exactly the kind of dynamics a new conflict would recreate: capital flight, dollarisation, black market currency trading, and a gap between official and street exchange rates. The key difference now is that Iraq is not the direct target of military action, but it is the unavoidable collateral victim, geographically, economically, and politically sandwiched between the two combatants.

What Investors and Observers Should Watch

For those tracking the dinar, whether as currency speculators, businesses operating in Iraq, or observers of the wider regional economy, the key indicators to monitor are:

The Central Bank of Iraq's foreign exchange auction volumes and reserves. A sharp drop in reserves or a sudden suspension of dollar auctions would signal that the peg is under existential pressure. The spread between the official exchange rate and the parallel market rate. Historically, this spread widens during periods of political and security stress, and a significant widening would be an early warning of impending devaluation. The status of Iranian energy supplies to Iraq. If gas flows are disrupted and the lights go out, the economic fallout would be rapid and severe. And crucially, the behaviour of Iraq's Iranian-backed militias. If they activate in response to US strikes on Iran, Iraq would transition from bystander to active warzone, and the dinar would face its most serious crisis since 2003.

Conclusion: A Currency with No Good Options

The Iraqi dinar is, at its core, a hostage to forces far beyond Baghdad's control. Iraq's government has limited ability to insulate its currency from a major military confrontation between the United States and Iran, a conflict whose epicentre would be on its doorstep and whose shockwaves would run directly through its energy sector, banking system, and political fabric.

Administration officials have been unclear about what their objectives are as they confront Iran, and that uncertainty itself is a risk factor for the dinar. Markets hate ambiguity, and a conflict with no clear endgame is the worst of all possible scenarios for a currency already carrying the weight of decades of instability.

In the best case, a short, sharp military strike followed by a rapid return to negotiations, the dinar would likely suffer a temporary shock: a flight to dollars, a widening of the parallel market premium, and a drawdown of central bank reserves, but ultimately a manageable correction. In the worst case, a sustained campaign, militia activation across Iraq, energy supply disruption, and a regional war, the dinar would face its most severe test since the 2003 invasion. The outcome would depend not just on what the US military does to Iran, but on whether Iraq can remain a bystander in a war that, by its very geography, it cannot escape.

This article reflects the geopolitical and economic situation as of late February 2026. It does not constitute financial or investment advice.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

See also:

If Trump Strikes Iran: Mapping the Oil Disruption Scenarios

Dinar Weakness: CBI "Not Responsible"

Iraqi Banks Restricted from US Dollar Transactions: FULL LIST [Amended]

2026: The Year Iraqi Dinar Speculators Finally Strike Gold?

Dinar Explainer 1: Why Iraq has Two Exchange Rates

Donald Trump and the "Great Iraqi Dinar Revaluation"

(Picture: The U.S. Navy aircraft carrier USS Gerald R. Ford (CVN-78), currently on route to the region).

By John Lee.

Iraq's Ministry of Oil has issued exclusive invitations to several major US oil companies to submit bids for taking over the operatorship of the West Qurna-2 field.

The Ministry said it is pursuing a transparent, competitive process based on approved criteria for awarding oilfield development contracts. Direct negotiations are under way with the invited companies, which will be allowed to submit offers and compete openly.

According to the statement, transferring management of West Qurna-2 to a leading US operator would support Iraq's production stability, safeguard its market share, and ensure the continuity of state revenues. It would also strengthen Iraq-US economic relations, facilitate technology transfer, and broaden the international expertise working in Iraq's oil sector.

The Ministry added that greater participation from major US firms reflects Iraq's strategic importance in global energy markets and contributes to long-term economic and strategic sustainability.

Russia's Lukoil, the operator of the field, said on 14th November that it was in negotiations with several potential buyers for its international assets, following restrictions imposed earlier that month. The United States subsequently issued a sanctions waiver allowing continued operations related to Lukoil until 13th December.

See also:

Lukoil in talks with Iraqi PM as US issues Sanctions Waiver

US Treasury Department statement

Lukoil statement

Jiyad: Oil Ministry should Brace for Russia's Coerced Exodus

(Source: Ministry of Oil)

By John Lee.

The United States has issued a sanctions waiver allowing continued operations related to Russia's Lukoil until 13th December, following restrictions imposed earlier this month.

Lukoil said on 14th November that it is in negotiations with several potential buyers for its international assets, adding that a deal will be announced once agreements and regulatory approvals are finalised. The company said it aims to maintain uninterrupted operations and energy supplies during the transition and is in regular contact with authorities in all countries where it operates.

Today [Monday] in Baghdad, Prime Minister Mohammed Shia Al-Sudani met with Lukoil's former President, Vagit Alekperov, to discuss mechanisms to stabilise oil production despite the impact of US Treasury measures on the company's investment contracts. Lukoil produces around 480,000 barrels per day (bpd) at the West Qurna-2 field.

Al-Sudani reaffirmed Iraq's commitment to stable global oil markets and to maintaining steady national output levels.

Industry sources previously told Reuters that Lukoil had declared force majeure at West Qurna-2, while last week Switzerland's Gunvor Group withdrew its proposal to acquire Lukoil's international assets following US opposition.

See also:

US Treasury Department statement

Lukoil statement

Jiyad: Oil Ministry should Brace for Russia's Coerced Exodus

(Sources: PMO / Lukoil / US Treasury / Reuters)

DNO ASA, the Norwegian oil and gas operator, has announced that Birgitte Wendelbo Johansen has been appointed Chief Financial Officer effective 1 November 2025, replacing Haakon Sandborg who is stepping down following 24 years in the role.

Ms. Johansen joins DNO from Reach Subsea ASA, an Oslo Børs listed oil services company, where she served as Chief Financial Officer since 2012. Prior to this, she had a successful career in banking, specializing in shipping and energy.

"I am pleased to pass the baton to Birgitte; her experience running a finance team and her energy and enthusiasm will help drive DNO's growth," said Mr. Sandborg.

Mr. Sandborg joined DNO from corporate finance roles at DNB and the Aker oil services group and is DNO's longest serving staffer.

"It's hard to overstate Haakon's contribution to DNO," said Ms. Johansen. "Under his watch, the Company completed 21 successful bond placements with no waivers, no amendments and no defaults."

Mr. Sandborg will remain at the Company in a senior advisory role until the end of the year.

(Source: DNO)

By John Lee.

Iraq's state-owned Rafidain Bank has announced that it has "completed" 87 percent of its foreign debt obligations through high-level legal and financial negotiations, significantly reducing the country's external liabilities.

As part of Iraq's adherence to the Paris Club Agreement and with direct Cabinet approval, the bank concluded major settlements with Dutch and French creditor companies. The most notable was under Cabinet Resolution No. 403 of 2025, which settled three Dutch lawsuits with a waiver exceeding 90 percent of the claimed amounts in favour of the bank.

Additionally, the bank achieved key legal victories in Turkey and Lebanon, recovering over $2.8 million in assets. According to a statement from Rafidain, this highlights the competence of Iraq's legal apparatus in defending state interests abroad.

Rafidain Bank confirmed it is pursuing final settlements to close the remaining debt portfolio, aiming to bolster Iraq's sovereign credit rating and reinforce global confidence in its fiscal governance.

See also:

Govt Denies Destruction of 62 Trillion Iraqi Dinar

Trump & Crypto: Will Bitcoin's Success Translate to the Iraqi Dinar?

Top 10 Dinar Articles from July

(Source: Rafidain Bank)

By Guest Blogger. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraqi Dinar Prospects: Reality Check After Six Months of Trump

Six months into Donald Trump's return to the presidency, the Iraqi dinar finds itself at a crossroads between economic fundamentals and persistent speculation. Whilst the currency's boosters continue to proclaim imminent revaluations, the reality on the ground tells a rather different story-one of mounting pressures on Iraq's economy that suggest further weakening, not strengthening, of the dinar.

The Numbers Don't Lie

Market projections indicate potential slight depreciation, with the exchange rate possibly reaching around 1,318 IQD per USD by the end of 2025. This represents a continued weakening from current levels, reflecting the deteriorating economic conditions that have emerged during Trump's first six months in office.

More optimistic forecasts suggest modest improvements, with the USD/IQD exchange rate might improve from 1,276.640 in March 2025 to 1,217.448 by December 2025, though even these projections show only marginal strengthening that would hardly satisfy those expecting dramatic revaluations.

The gulf between these professional forecasts and the expectations of dinar enthusiasts could not be starker. More than half of respondents expected the Iraqi dinar to revalue by at least 1,000x in the first 100 days of Trump's term -- a prediction that has been thoroughly debunked by events.

Economic Fundamentals Under Pressure

The fundamental drivers of currency value paint a concerning picture for the dinar's prospects. The current account is expected to weaken considerably in 2025 primarily due to declining oil export revenues. The deterioration in the external position is projected to weigh on foreign reserves.

Iraq's foreign currency reserves, whilst still substantial, are showing signs of strain. Iraq's foreign currency reserves are sufficient to finance 13 months of imports, despite a recent decline in coverage, according to the Central Bank. The Central Bank of Iraq (CBI) revealed that the country's foreign exchange reserves declined in May 2025, marking a concerning trend as oil revenues continue to fall.

The IMF's assessment is particularly sobering, noting that Iraq's vulnerabilities have increased in recent years due to a large fiscal expansion, precisely at a time when the government's main revenue source-oil exports-faces sustained pressure from both price declines and geopolitical disruptions.

Trump's Policies: A Double-Edged Sword

Leading Iraqi economists have warned that Trump's policies could actively harm the dinar. A leading Iraqi economist has predicted that US President Donald Trump's pressure to reduce oil prices will harm the Iraqi economy, and could lead to a devaluation of the Iraqi dinar.

This assessment reflects the reality that Iraq remains overwhelmingly dependent on oil revenues, which constitute roughly 90% of government income. Any sustained pressure on oil prices-whether through Trump's energy policies, sanctions on Iran affecting regional markets, or broader geopolitical tensions-directly undermines the fiscal position that underpins the dinar's stability.

Trump's renewed "maximum pressure" campaign against Iran has created additional complications. The removal of sanctions waivers that previously allowed Iraq to import Iranian energy has forced Baghdad to seek more expensive alternatives, further straining the government's finances and potentially requiring drawdowns of foreign reserves that support the dinar's exchange rate.

The Revaluation Delusion Persists

Despite six months of evidence contradicting their expectations, dinar revaluation theorists show little sign of abandoning their beliefs. The lack of any statement, policy, or indication from Trump regarding the Iraqi dinar has been met with increasingly creative explanations from supporters of the theory.

The fundamental misunderstanding underlying these expectations appears to be the belief that currency revaluations are political decisions that presidents can simply decree, rather than market-driven responses to economic fundamentals. The comparison some make to Kuwait's dinar post-liberation ignores the vastly different economic circumstances and structural reforms that accompanied that currency's strengthening.

Looking Forward: Modest Hopes, Harsh Realities

The most optimistic realistic scenario for the dinar involves gradual stabilisation rather than dramatic appreciation. This would require Iraq to successfully diversify its energy imports away from Iran, maintain political stability, and weather the current period of reduced oil revenues without excessive drawdowns of foreign reserves.

However, several factors work against such optimism:

Fiscal Pressures: With oil prices well below budgeted assumptions and production facing constraints, Iraq's government faces mounting pressure to either cut spending or increase borrowing-both of which could weaken confidence in the dinar.

Regional Instability: Trump's unpredictable approach to Middle Eastern policy creates ongoing uncertainty that typically undermines emerging market currencies like the dinar.

Structural Dependencies: Iraq's overwhelming reliance on oil exports leaves it vulnerable to external shocks, whether from market conditions, sanctions, or regional conflicts.

The Reality Check

For those holding Iraqi dinars in expectation of massive revaluations, the first six months of Trump's presidency have delivered a harsh reality check. Professional market forecasts suggest, at best, modest movements in the exchange rate-nothing approaching the transformative gains that speculators expect.

The economic fundamentals that determine currency values-fiscal position, foreign reserves, trade balance, and political stability-all point towards continued pressure on the dinar rather than the dramatic strengthening that revaluation theorists predict.

Iraq's path to currency stability lies not in presidential proclamations or speculative theories, but in the hard work of economic diversification, institutional reform, and fiscal discipline. Until these fundamentals improve, the dinar's prospects remain constrained by the same structural challenges that have defined Iraq's economy for decades.

The lesson from Trump's first six months is clear: currencies reflect economic realities, not political fantasies. The Iraqi dinar's future depends on Iraq's economic performance, not on the whims of foreign presidents or the hopes of speculative investors.

For more information on the Iraqi dinar, check out IBN's Dinar Page here: https://www.iraq-businessnews.com/the-dinar-page/?swcfpc=1 

See also:

Iraqi Central Bank Reduces Supply of Dinars

Trump & Crypto: Will Bitcoin's Success Translate to the Iraqi Dinar?

Top 10 Dinar Articles from July

"Tired of Dinars", Iraq flocks to Dogecoin