Norwegian oil and gas company DNO reported a sharp recovery in production from the Kurdistan Region in the third quarter of 2026, alongside a price rebound that reached its highest point since local sales began in 2023. The surge follows a months-long suspension triggered by regional security concerns.
According to third quarter financial results released by the company on Thursday, DNO realized 38.5 USD per barrel in Kurdistan, marking the highest price since local sales commenced in 2023. Prices for local sales were increased further this month to 45 USD per barrel, reflecting a nearly 50 percent increase compared to rates recorded at the beginning of 2026.
Net production in the Kurdistan Region averaged 54,914 barrels of oil equivalent per day (boepd) between July and September, representing a substantial rebound from 273 boepd in the second quarter and 34,929 boepd during the corresponding period last year.
Gross output from the DNO operated Tawke license, which covers the Tawke and Peshkabir fields in Duhok province, reached 73,200 boepd for the quarter. Operations had previously been paused for four months as a precautionary measure during escalating regional conflict. DNO holds a 75 percent stake in the license, with Genel Energy holding the remaining 25 percent.
The temporary shutdown, initiated on February 28, led to widespread impacts across the Kurdistan Region’s broader energy sector, driving total regional output down from over 270,000 barrels per day to under 70,000 barrels per day by early March. Operations resumed at Tawke on June 28 and at Peshkabir on July 11, leading to a steady restoration of production levels.
Factoring in the impact of first half suspensions, DNO projects full year gross production from its operated assets in Kurdistan to average 50,000 boepd.
Drilling operations expanded during the third quarter following the deployment of a second third party rig as part of an eight well program initiated late last year. Company officials indicated plans to further broaden drilling activities in 2027, including evaluating options to contract a third major rig and exploring areas beyond the current production boundaries of the license area.
The recovery in Kurdistan contributed to a broader quarterly performance for DNO, with company wide net production rising 61 percent quarter on quarter to 142,768 boepd and total revenue reaching a record 1 billion USD.
DNO, founded in 1971 as Norway’s oldest oil operator, has maintained an active presence in the Kurdistan Region since June 2004. Cumulative production from its Tawke license surpassed 500 million barrels in December 2025.
