Genel Energy Reports Sharp Decline in Kurdistan Oil Output
At a Glance
- Production drops by 66%.
- Four-month shutdown hits operations.
- KRG owes company $88 million.
- Output resumes after June restart.
Genel Energy says oil production from its Tawke and Peshkabir fields in the Kurdistan Region fell by more than 66% during the first half of 2026 after operations were suspended for four months amid regional conflict. The company also said it is still owed more than $88 million by the Kurdistan Regional Government (KRG).
Key Statements and Focus Area
- Production at Tawke and Peshkabir fell by more than two-thirds.
- Oil was sold domestically at prices well below international markets.
- Genel Energy says the KRG owes it over $88 million.
- Production resumed on June 28 as the company works to restore output.
In its financial and operational report for the first half of 2026, Genel Energy said production at the Tawke and Peshkabir fields was suspended for four months due to regional military tensions involving Iran, the United States, and Israel.
The disruption reduced production by more than 66%, while all crude produced during the period was sold on the domestic market at prices significantly below international benchmarks.
According to the report, gross production from the Tawke license declined from 78,400 barrels per day to 26,400 barrels per day.
Genel Energy's net share of production also dropped from 19,600 barrels per day to 6,600 barrels per day.
The company said it initially sold crude domestically for an average of $31 per barrel, with the average price later rising to more than $35 per barrel after production resumed.
Genel Energy said the KRG owes the company more than $88 million in outstanding payments, excluding accrued bank interest.
The report also noted that the company owes the KRG $26 million following an arbitration ruling, adding that it will not appeal the decision.
The company resumed production on June 28, 2026, and said it is working with the KRG and field operator DNO to restore production to approximately 79,900 barrels per day and resume exports through the pipeline network.
Genel Energy said restoring pipeline exports would allow its crude to access international markets, where prices remain higher than domestic sales.
FYI
Oil exports from the Kurdistan Region resumed in 2026 after a prolonged interruption, but producers continue to face operational, security, and financial challenges. Energy companies operating in the region have repeatedly called for the settlement of outstanding payments and the restoration of stable export flows through Türkiye's Ceyhan port, while Baghdad and Erbil continue discussions over long-term energy and revenue arrangements.
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