Genel Energy reported a 66.3% decline in combined oil production from the Tawke and Peshkabir fields during the first half of 2026 compared with the same period last year.
The company linked the fall to a four-month production shutdown caused by escalating regional military tensions at the end of February.
Average daily output from the Tawke field dropped to 26,400 barrels during the first six months of 2026. In the first half of 2025, production averaged 78,400 barrels per day.
Genel owns a 25% stake in Tawke. Its share of production therefore fell from 19,600 barrels per day to only 6,600 barrels.
Operations stopped completely after fighting involving the United States, Israel and Iran intensified. The companies suspended production and new drilling as a precaution.
Drilling activity resumed in April, while production restarted on June 28, shortly before the end of the reporting period. Before the shutdown, combined production had reached about 79,900 barrels per day.
Because pipeline exports remain suspended, operators sold all produced oil in the Kurdistan Region’s domestic market. The average local selling price reached $31 per barrel, down from $33 during the same period in 2025.
After production resumed, prices increased above $35 per barrel. Genel said buyers paid all amounts in cash before receiving the oil.
The report also addressed the company’s financial relationship with the Kurdistan Regional Government. As of June 30, the KRG still owed Genel $88 million, excluding interest.
A company subsidiary also owes the KRG $26 million following a legal ruling. Genel said it would not pursue further appeals.
Chief Executive Paul Weir said Genel continues working closely with DNO to restore production and restart exports. The company hopes to benefit from international prices and maximize future revenue, while improving cash flow and strengthening the long-term value of its regional assets.
