Norwegian energy company DNO has resumed production activities at the Tawke and Peshkabir oil fields in the Kurdistan Region after months of disruption caused by regional tensions. The restart marks an important step in the recovery of the Kurdish energy sector following security escalations earlier this year.
The latest development places renewed attention on the DNO Kurdistan oil production recovery process. Company officials confirmed that operations officially resumed in April after a ceasefire reduced tensions across the region.
The suspension began after major military developments in late February, including joint American and Israeli strikes targeting Iran. Those events increased security concerns across several energy-producing areas in the Middle East and forced companies to temporarily scale back operations.
According to DNO’s first-quarter financial report, production activities restarted on April 9 at the Tawke and Peshkabir fields. The company has resumed limited field work, including maintenance operations on existing wells and preparations for additional drilling projects.
DNO also restarted an eight-well drilling campaign that had previously paused because of the conflict. The company expects the program to help improve long-term production levels once operations fully stabilize.
The temporary shutdown heavily affected output during the first quarter of 2026. DNO reported average net production in the Kurdistan Region at around 39,600 barrels per day. That figure represented a sharp decline from the nearly 58,000 barrels recorded during the final quarter of 2025.
Despite the operational halt, the company said two newly drilled wells successfully entered production shortly before the escalation began. Those wells helped partially offset some production losses during the difficult period.
Industry observers say the recovery of DNO Kurdistan oil production remains closely tied to regional security conditions. Energy companies operating in northern Iraq continue monitoring political and military developments that could affect future operations.
DNO also indicated that its production and investment targets for 2026 may remain lower than earlier expectations. Company officials cited the prolonged suspension and continuing uncertainty across the region as major challenges.
For now, the company continues selling its share of oil to local buyers at an average price of around $31 per barrel. Analysts believe market conditions and export limitations continue to affect profitability for operators in the Kurdistan Region.
The restart of activities at Tawke and Peshkabir nevertheless signals cautious optimism for Iraq’s northern energy sector. Officials and investors hope improving regional stability will encourage further production growth in the coming months.
The gradual return of DNO Kurdistan oil production could also support broader economic activity in the Kurdistan Region as energy companies restore operations and investment projects.