DNO Moves to Raise Output at Kurdistan Region's Tawke Field
Norwegian energy company DNO says production has resumed at Tawke and Peshkabir as it works to restore output following months of disruption linked to regional tensions.
ERBIL (Kurdistan24) - Norwegian oil and gas company DNO says it is working to restore production at the Tawke oil field in the Kurdistan Region to levels reached before the latest escalation in regional tensions, after months of suspended operations sharply reduced its local output.
The company said in its second-quarter 2026 financial report that production at the Tawke license has resumed, with efforts now focused on increasing output toward previous levels.
Production Resumes at Tawke and Peshkabir
DNO suspended production and drilling at the Tawke license at the end of February as a precaution following US and Israeli strikes on Iran.
The company resumed production at the Tawke field in late June and at Peshkabir in mid-July, according to its financial report.
DNO said its immediate priority is to rebuild production in the Kurdistan Region while export routes remain unavailable.
Until exports resume, the company is selling its share of crude on the local market for approximately $35 to $39 per barrel.
The restart is significant for the Kurdistan Region's energy sector, where oil production has faced repeated disruptions in recent years because of security concerns, export restrictions and unresolved arrangements surrounding the Iraq-Türkiye pipeline.
North Sea Output Offsets Kurdistan Losses
Despite the sharp decline in its Kurdistan production, DNO reported strong financial results for the second quarter.
The company recorded $761 million in revenue, a 21 percent increase from the previous quarter, while operating profit rose 55 percent to $439 million. Net profit increased 65 percent to $83 million.
DNO attributed the performance largely to increased production in the North Sea and higher global oil prices, which offset the impact of the production halt in the Kurdistan Region.
The company reported average total production of 88,400 barrels of oil equivalent per day during the quarter. North Sea operations accounted for 84,900 boepd, while production from the Kurdistan Region averaged only about 300 boepd during the reporting period.
The figures underline the scale of the disruption to DNO's Kurdish operations compared with their contribution before the suspension.
Export Routes Remain Key
DNO's efforts to rebuild production are taking place while the longer-term question of exports remains unresolved.
The company said local-market sales will continue until export routes reopen, limiting the price it can obtain for its crude compared with international sales.
For the Kurdistan Region, restoring sustained exports remains important not only for international oil companies but also for government revenues and the wider economy.
DNO's renewed production also comes as international energy companies operating in the Region assess security conditions following months of attacks and regional instability.
DNO Makes Genel Bid
Separately, DNO said that after the end of the second quarter it submitted a proposal to acquire shares in Genel Energy for 69 pence per share.
The offer represented a 38 percent premium over Genel's market closing price at the time, according to DNO.
For now, however, the immediate focus remains on its existing operations in the Kurdistan Region.
DNO's return to production at Tawke and Peshkabir signals an effort to rebuild an important part of its Kurdish portfolio, while the pace of any further increase will depend on security conditions, export arrangements and the wider regional oil market.