Search Icon

Gulf Keystone denies bid talk

Oil exploration group Gulf Keystone Petroleum has denied a weekend newspaper report that it was in £7bn bid talks with ExxonMobil.

Oil exploration group Gulf Keystone Petroleum has denied a weekend newspaper report that it was in £7bn bid talks with ExxonMobil.
Speculation about a wave of takeovers in the region emerged last month after the Kurdistan Regional Government said Exxon had signed contracts for six exploration blocks. Credit: Photo: AP

Shares in Kurdistan-focused Gulf Keystone soared by almost a third in morning trade after a report on Sunday said that the US oil giant was preparing an 800p-a-share offer.

However, Gulf Keystone shares fell back after the company said "the board is not in discussions with regard to a sale of the company.

Speculation about a wave of takeovers in the region emerged last month after the Kurdistan Regional Government said Exxon had signed contracts for six exploration blocks.

However, the semi-autonomous Kurdish region is yet to agree a deal on revenue sharing with the Iraqi central government, so oil exports from the regions will be limited to 175,000 barrels of oil a day in 2012, up from 100,000 barrels a day this year.

Hopes are rising that a deal can be struck to allow exports into international markets, where oil is sold at a premium to local markets, but progress is slow.

The dispute has been so intense that oil exports were banned by the central Iraqi government for almost 18 months, only restarting in January this year.

Gulf Keystone shares ended up 12¾ at 178¼p, having hit 219¾p in morning trading.