DNO Seeks Kurdistan Production Stability and Targets Genel Buyout

At a Glance

Kurdistan field production successfully restarted after a temporary local halt.
DNO reported record second-quarter revenue of USD 761 million.
A buyout offer was launched to fully acquire partner Genel Energy.
North Sea assets drove the financial boom during Kurdistan pipeline shutdowns.

Norwegian oil and gas operator DNO ASA stated that management expects production at the Tawke oil field in Kurdistan Region to stabilize near pre-shutdown levels, while reporting record second-quarter revenue of USD 761 million which represents a 21 percent increase quarter-on-quarter.

Key statement and Focus area

Executive Chairman Bijan Mossavar-Rahmani stated that the company remains "not unhinged by market turmoil," expressing a willingness to exchange market volatility for improved security and price stability in Kurdistan while its North Sea assets continue operating at peak capacity.
Mossavar-Rahmani described the Genel Energy acquisition bid as a "compelling proposal," urging the Genel Board of Directors to accept the transaction to provide shareholders with an immediate premium and long-term dividend growth.

The updates were highlighted in the company's second-quarter financial report, where booming European operations successfully insulated the firm from regional pipeline disruptions.

Following a temporary operational halt of its Kurdistan assets initiated in late February 2026 as a safety precaution due to regional geopolitical tensions, DNO has successfully brought its primary Kurdistan assets back online.

Limited field operations first resumed on April 9 with well workovers and the relaunch of an eight-well drilling campaign.

Full production subsequently restarted at the Tawke field on June 28, followed by the Peshkhabur field on July 11.

As a result of the prolonged shutdown, Kurdistan’s net contribution to DNO’s second-quarter output averaged just 300 barrels of oil equivalent per day (boepd).

Absent international pipeline export routes, DNO continues to sell its entitlement oil into the local Kurdistan market at discounted prices ranging in the mid-to-upper USD 30s per barrel.

DNO Launches Buyout Bid for Genel Energy

In a major corporate move following the close of the quarter, DNO announced an indicative offer on August 7 to acquire Genel Energy plc, which holds the remaining 25 percent balance of the Tawke license.

The cash-or-stock proposal offers 69 pence per share, representing a 38 percent premium over Genel's closing market price.

DNO Posts Record $761M Q2 Revenue and Raises North Sea Guidance

On a global scale, DNO achieved record second-quarter revenue of USD 761 million, marking a 21 percent increase quarter-on-quarter. The firm’s operating profit surged 55 percent to USD 439 million, while net profit grew 65 percent to USD 83 million.

The financial boom was driven entirely by DNO's unhedged North Sea assets, which produced 84,900 boepd and capitalized on high global oil and gas prices. West Africa contributed an additional 3,200 boepd to bring total quarterly net production to 88,400 boepd.

Following the completion of annual maintenance and the activation of new developments, DNO has officially raised its 2026 North Sea production guidance by 3,000 boepd to a new target of 85,000 boepd.

The company also maintained its quarterly dividend at NOK 0.375 per share, payable in September 2026.

FYI

DNO is a Norwegian company founded in 1971 that operates in the fields of oil and gas exploration, development, and production.

In addition to the Kurdistan Region, the company holds operational licenses in Norway, the United Kingdom, Côte d'Ivoire, the Netherlands, and Yemen.

The company's average daily production across all its fields reaches 88,400 barrels of oil equivalent (boepd), the majority of which is produced from its North Sea assets, while Kurdistan Region production averaged just 300 boepd during the second quarter.