Norwegian oil and gas company DNO says it is gradually restarting oil production in the Kurdistan Region after suspending operations earlier this year because of security concerns.
In its second-quarter 2026 financial report, DNO said it halted all production and drilling activity at the Tawke licence at the end of February. The company owns a 75% stake in the licence.
DNO partially resumed field operations on April 9. Work included repairs to older wells and preparations to drill eight new wells.
Production restarted at the Tawke field on June 28 and at Peshkabir on July 11. The company now aims to return output to pre-suspension levels, provided security conditions remain stable.
DNO’s net share of Kurdistan Region production averaged only 273 barrels per day during the second quarter. That compared with 39,600 barrels per day in the first quarter.
The sharp decline reflected the suspension of production through most of April, May and June.
DNO said it currently sells oil into the local market at prices ranging from $35 to $39 per barrel.
The company also highlighted its proposed acquisition of Genel Energy. DNO announced the offer on August 7, 2026, seeking to buy all outstanding shares in the company.
Genel owns a 25% stake in the Tawke licence. DNO offered 69 pence per share, representing a 38% premium over Genel’s closing share price on August 6.
Under UK regulations, DNO has until September 4 to announce a final decision on the bid.
Chief Executive Bijan Mossavar-Rahmani said the company hopes improving security and more stable pricing will reduce market uncertainty.
DNO also continues discussions with the Kurdistan Regional Government over unpaid financial entitlements and future export terms through the Iraq-Turkey Pipeline.
The company says restoring production remains a priority as operating conditions improve across its main Kurdistan Region fields.
