ERBIL, Kurdistan Region - Genel Energy released its latest financial and operational report revealing a 66.3 percent decline in overall oil production levels in the Tawke and Peshkabur fields for the first half of 2026 compared to the same period last year.
According to Genel Energy's report, the decline was due to the temporary suspension of production operations following the escalation of military tensions and conflict in the region at the end of February this year.
Production decline and initial losses
In the first half of 2026, the average gross daily production in the Tawke license reached 26,400 barrels of oil per day (bopd) compared to an average production of 78,400 bopd in the first half of 2025.
Genel Energy holds a working interest of 25 percent in the Tawke license (Tawke and Peshkabur fields). The company's production level dropped from 19,600 bopd in the first half of 2025 to 6,600 bopd in the first half of 2026.
Oil production was suspended for four months at the end of February; due to the onset of military conflicts between the US, Israel, and Iran, production activities and well-drilling were halted as a precautionary measure.
Resumption of activities
According to the report, initial drilling activities resumed in April, and production operations at the Tawke and Peshkabur fields restarted on June 28, just before the end of the first half. Prior to the shutdown, production levels were at approximately 79,900 bopd.
Domestic Oil Sales and $33 per barrel: Due to the continued suspension of pipeline exports, all produced oil was sold in the Kurdistan Region's domestic market.
Price per barrel: The average domestic sale price in the first half of 2026 was $31 per barrel, compared to $33 per barrel in the first half of 2025. Genel Energy noted that all financial entitlements for domestic sales were received in cash prior to oil delivery. Following the resumption of production, prices rose to over $35.
Financial entitlements and relations with the KRG
In another section of the report, Genel Energy highlighted its financial situation with the Kurdistan Regional Government (KRG). Regarding overdue debts, the report stated that as of June 30, 2026, an amount of $88 million remains outstanding as overdue financial entitlements with the Kurdistan Regional Government (excluding bank interest). This amount was adjusted/credited by $40 million compared to previous stages.
Regarding the legal claim that the Kurdistan Regional Government won against Genel Energy, the company announced that its subsidiary (Genel Energy Miran Bina Bawi) owes $26 million to the KRG due to an arbitration cost award, and stated that following the rejection of their appeal in April, no further legal appeals will be pursued.
Paul Weir, Chief Executive Officer of Genel Energy, stated: "In Kurdistan, we continue to work closely with DNO to normalize production levels and restart oil exports. Our efforts continue toward realizing international pricing, which could significantly increase the core revenue of the Tawke license."
