Gulf Keystone Petroleum Ltd on Thursday said sales and production increased in 2024, with the outlook for 2025 dependent on local demand remaining strong.

The oil and gas producer, which operates in the Kurdistan region of Iraq, said revenue grew 22% to $151 million in 2024 from $124 million year-on-year.

The company said 2024 gross average production increased 86% to 40,689 barrels of oil per day from 21,891 bopd in 2023.

Gulf Keystone said this reflects a full-year of local sales and strong underlying local market demand, following the suspension of pipeline exports in 2023.

Gross average production in the 2025 year-to-date increased again to around 47,900 bopd due to continued strong local market demand and robust prices.

Operating costs increased in 2024 by 44% to $52 million from $36 million year-on-year, but gross operation expenses per barrel fell by 21% to $4.4 per barrel from $5.6 per barrel due to higher production.

The company noted that there have been zero lost time incidents for over two years due to continued high safety standards.

It said the near-term local sales outlook is strong, but there is limited visibility beyond monthly contract renewals with buyers.

It expects 2025 gross average production between 40,000 to 45,000 bopd if local market demand persists at current levels.

The company also forecasts stable low costs with operating costs between $50 million to $55 million.

Gulf Keystone said it ‘remains committed’ to returning excess cash to shareholders, with the current $10 million share buyback programme ongoing.

The company said it will next review its capacity to declare an interim dividend in March.

The firm continues to ‘proactively engage with government stakeholders’ to seek a solution to restart crude exports through the Iraq-Turkey pipeline.

It is monitoring the progress of an amendment to Iraq’s budget regarding compensation for Kurdistan’s oil production.

Chief Exeuctive Officer Jon Harris said: ‘Local sales have remained strong since our previous market update in December 2024... If current demand persists in the local market, our disciplined and flexible work programme, combined with our stable low costs, should enable us to deliver gross average production in the range of 40,000 to 45,000 bopd in 2025 and generate material free cash flow, underpinning our ongoing commitment to return excess cash to shareholders.

‘At the same time, we continue to proactively engage with government stakeholders to unlock an exports restart solution.’

Gulf Keystone shares were down 2.0% to 159.10 pence in London on Thursday morning.

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