ERBIL, Kurdistan Region - Norwegian oil and gas company DNO reported a sharp recovery in production from the Kurdistan Region in the third quarter of 2026 and a rebound in output, with oil prices reaching their highest level since local sales began in 2023 following a months-long suspension triggered by the US-Israeli war against Iran.
“In Kurdistan, DNO received USD 38.5 per barrel, the highest price realized since local sales commenced in 2023,” according to the company’s third-quarter results released on Thursday, noting that “Prices for oil sales in Kurdistan were raised this month to USD 45 per barrel, up nearly 50 percent from sales at the start of 2026.”
DNO’s net production in the Kurdistan Region averaged 54,914 barrels of oil equivalent per day (boepd) between July and September, up from just 273 boepd in the second quarter and 34,929 boepd in the same period last year.
Gross production from its operated Tawke license, which encompasses the Tawke and Peshkabir oil fields in Duhok province, reached 73,200 boepd during the quarter, marking a substantial recovery after operations were suspended for four months as a precautionary measure amid escalating regional hostilities.
DNO holds a 75 percent stake in the license, while Genel Energy owns the remaining 25 percent.
The company suspended production and drilling on February 28 following US-Israeli strikes against Iran. It resumed production at Tawke on June 28 and at Peshkabir on July 11, gradually restoring output after the prolonged shutdown.
The disruption had significantly affected the Kurdistan Region’s oil industry. According to a July analysis by the Rudaw Research Center, regional production fell from more than 270,000 barrels per day before the war to below 70,000 barrels per day in early March, as several oil fields halted operations amid security concerns.
Reflecting the impact of the first-half suspension, DNO expects gross production from its operated assets in the Kurdistan Region to average 50,000 boepd for the full year.
Drilling activity accelerated during the third quarter, with a second third-party rig deployed as part of an eight-well drilling program launched shortly before the end of 2025.
The company said it intends to expand drilling further in 2027 and is considering contracting a third large rig, as well as exploring areas beyond the existing production footprint of its license.
DNO’s stronger Kurdistan output contributed to a broader improvement in its financial performance. The company’s total net production across its portfolio rose 61 percent quarter-on-quarter to 142,768 boepd, while revenue reached an “all-time high” with a record $1 billion.
Founded in 1971, DNO is Norway’s oldest oil company and has operated in the Kurdistan Region since June 2004. In December 2025, the company announced that cumulative production from its Tawke license had exceeded 500 million barrels.
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