ERBIL, May 7, 2026, 23:03 (UTC+3)
- DNO has resumed some field operations at the Tawke license. Oil production in Iraqi Kurdistan, however, is still halted due to the ongoing security situation in the region.
- Genel Energy saw both Tawke-related production and free cash flow drop during the first quarter. Over at ShaMaran, Atrush and Sarsang are still offline.
- That question of restarting looms larger now, with the Iraq-Türkiye pipeline standing as one of the rare remaining export routes, as the broader Iran war snarls Gulf energy flows.
DNO ASA has resumed some field activity at its Tawke license in Iraq’s Kurdistan, handling well maintenance and launching an eight-well drilling program. Actual production is still off, after the company suspended operations in the wake of the U.S.-Israeli strikes on Iran on Feb. 28. According to Reuters, DNO hasn’t provided any timeline for restarting output at either Tawke or Peshkabir.
The partial restart is significant—Kurdistan producers had just started clawing back export access following the protracted pipeline standoff. But with the Iran war flaring, that fragile progress is once again at risk, slashing output at fields operated or supported by DNO, Genel Energy, and ShaMaran Petroleum.
DNO reported average first-quarter net production at 131,700 barrels of oil equivalent per day, or boepd—down 12% from the prior quarter. Lower volumes from Kurdistan dragged on results, though North Sea output hit a record high. Boepd refers to an industry metric converting oil and gas output into a single oil-based number.
Executive Chairman Bijan Mossavar-Rahmani pointed to “Middle East flows” being restricted, but emphasized robust output from the North Sea. DNO posted $284 million in operating profit and $627 million in revenue, with net profit for the quarter landing at $51 million. DNO ASA
DNO kicked off the year at Tawke with robust output, putting two fresh wells online in the first quarter—then stopped both drilling and production. Some activity resumed on April 9: workovers on older wells and groundwork to boost capacity if security and market conditions allow.
Genel, owner of a 25% stake in the Tawke license—DNO controls the remaining 75%—reported Tawke gross output slid to 52,800 barrels per day in the first quarter, down from 77,270 bpd in the prior quarter. Its own working-interest production slipped to 13,200 bpd. The average sales price: $31 a barrel.
Cash flow took the hit. Genel reported a $2 million free cash flow outflow for the quarter, with cash reserves at $222 million as of March 31. The company also flagged $88 million still overdue from the Kurdistan Regional Government under local pricing terms, interest not included. Shares in Genel ended the session down 3.77% in London, closing at 51 pence, according to MarketScreener data.
Security costs have entered the equation. According to Rudaw, DNO set up 2.8 km of concrete barriers at sites in the Tawke license area following previous drone strikes, underscoring that the challenge involves more than just market access—worker and facility safety is front and center.
ShaMaran, the Canadian company involved in the Atrush and Sarsang blocks, reported that combined daily oil output from those fields averaged 35.9 thousand barrels in the first quarter, a drop of 45% from a year earlier. The decline, the company said, was primarily due to a shut-in that began at the start of March and weaker volumes from Sarsang. Chief Executive Garrett Soden blamed the Iran war, saying it had kept “most international oil companies shut-in since early March.” ShaMaran Petroleum Corp.
ShaMaran reported that output at both Atrush and Sarsang is still on hold, with no clear timeline for resumption. According to the company, the Atrush field might ramp back up to full production fairly quickly once things get going again. Sarsang, though, is expected to come back online at lower levels and would need several months to reach full capacity, recovering step by step.
The bigger threat? Field operations picking up speed before exports or security measures are ready. ShaMaran has tied its 2026 plans to a handful of variables: regional security conditions, the ongoing Iraq-Türkiye pipeline export deal with Iraq’s SOMO, finishing up payment reconciliation, plus either stretching out or hammering out a new Iraq-Turkey pipeline agreement ahead of its July 2026 expiration.
Volatility shows no sign of easing. According to Reuters, the Strait of Hormuz has stayed shut for two months during the U.S.-Israeli conflict with Iran, blocking a critical artery for oil and gas shipments and squeezing alternative export lines like the Iraq-Türkiye pipeline.
