Genel Energy confirms production restart after DNO takeover approach

Genel Energy PLC on Thursday said production has restarted at its Tawke and Peshkabir fields in the Kurdistan region of Iraq, as it continued to seek access to export markets following disruption caused by the conflict in the Middle East.

The exploration and oil production company with production assets in the Kurdistan Region of Iraq, and exploration assets in Oman and Somaliland, said drilling activities recommenced in April, while production restarted at Tawke on June 28 and Peshkabir on July 11.

The update came after DNO ASA, the Norwegian oil & gas operator, announced it had approached the Genel board with a possible offer to acquire the company.

DNO said it expected production at the Tawke licence to stabilise at around pre-shutdown levels, assuming contributions from new wells and no adverse security developments.

DNO said it was continuing to seek access to export markets or export prices, but was currently selling its entitlement oil at prices in the mid-to-upper USD30s per barrel.

Genel said access to export markets or export prices would more than double its free cash flow generation from the Tawke production sharing contract, its major onshore oil asset in Iraq.

DNO Executive Chair Bijan Mossavar-Rahmani called the possible offer a "compelling proposal for Genel shareholders".

"Rather than resisting a generous offer, the Genel board of directors should make way for a transaction that gives shareholders an immediate premium and the opportunity to come along for the DNO ride," he added.

Genel reported significant losses in the first half of 2026, citing significant disruption to production caused by the conflict in the Middle East.

Genel shares closed up 2.4% at 64.80 pence per share on Thursday in London.

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