Gulf Keystone returns a further $15m to shareholders

This is lower than the $25m interim dividend paid in 2023 but that followed the cancellation of the prior year's proposed final dividend.

"With improvements in the operating environment, the company’s ambition is to reinstate an appropriate distributions policy to provide shareholders with greater clarity on returns," GKP said in a statement at its annual general meeting update.

"In the interim, the board will continue to review the company’s capacity for additional shareholder returns via dividends or buybacks based on the operating environment and the company’s liquidity needs."

Chief executive Jon Harris said the company had made "significant progress" since last year when it had to adjust to a new operating environment following the suspension of Kurdistan crude exports in March 2023.

He said the company had "successfully adapted [...] safely transitioning our operations to local sales and sharply reducing capital expenditures and costs. As a result, we have been able to generate meaningful free cash flow, enabling us to strengthen our balance sheet and subsequently return cash to shareholders this year through our recent share buyback programme of up to $10m."

Crude sales to the local market from the Shaikan Field are said to have been "robust" with gross average sales in 2024 year to date increasing to 38,700 barrels of oil per day and current prices further improving to $28 a barrel.

GKP said it continues to engage with the government for a restart solution for pipeline exports. Political and commercial negotiations are ongoing, so it remains uncertain when exports will restart.

"Together with other IOCs operating in Kurdistan, GKP is ready to restart exports, contingent upon reaching agreements on payment surety for future oil exports, the repayment of outstanding receivables and the preservation of current contract economics," the company said.

Shares were up 6.4% at 150.92p by 0807 BST.