At a Glance

• DNO’s Kurdistan oil production plummets by over 99% in the second quarter.
• The prolonged shutdown of the Iraq-Turkey export pipeline halts regional sales.
• Phased field restarts begin at Tawke and Pishkhabur amid local security dependencies.

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Key Statements and Focus Area

• Pipeline Fallout: The severe operational contraction across Kurdistan fields stems directly from the ongoing closure of the Iraq-Turkey export pipeline.
• Field Restarts: Phased operations resumed at Tawke and Pishkhabur, though full restoration depends entirely on local security conditions.

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Norwegian operator DNO released its quarterly operational update on Tuesday, revealing a severe contraction in Kurdistan oil production, sales volumes, and realized pricing during the second quarter.

The company reported that its Kurdistan Region production plummeted from 39,600 barrels per day (bpd) in the first quarter of the year to a mere 273 bpd in the second quarter, following the shutdown of the Iraq-Turkey export pipeline.

While DNO posted sales of 14,753 bpd at an average price of $31 per barrel during the first quarter, it withheld all sales and pricing statistics for Kurdistan's fields for the second quarter.

Regarding field operations, the company noted that limited production restarted at the Tawke field in Duhok Governorate on April 9, with large-scale operations officially resuming by June 28. This was followed by the resumption of operations at the Pishkhabur field on July 11.

DNO further stated that the local security situation remains the primary factor determining how quickly it can fully restore its operations across the region.

For You: Through Our Lens

DNO's near-total production freeze in the second quarter was compounded by a pre-emptive shutdown following the outbreak of intense regional hostilities.

Since the outbreak of military confrontation between the U.S. and Iran in late February, hundreds of attacks have been carried out against infrastructure in the Kurdistan Region.

International operators halted fields out of caution during severe airspace and drone risks, with operations only beginning a phased recovery following a diplomatic ceasefire. While international operators demand robust security guarantees,

Baghdad is treating the physical protection of Kurdish fields as a vital pillar of Iraq’s national budget security.

An official from the North Oil Company (NOC) told Channel8 earlier that total oil exports through the Kurdistan Region's pipeline to Turkey's Port of Ceyhan and global markets reached 193,000 barrels on Monday.