Genel Energy (LSE:GENL), the Kurdistan-focused oil producer, confirmed operator DNO's update that drilling resumed in April and production restarted at the Tawke field on 28 June and at the Peshkabir field on 11 July.
The confirmation echoes comments Genel made at its half-year results, and DNO expects Tawke output to stabilise near pre-shutdown levels, assuming new wells contribute and security conditions do not deteriorate.
DNO is currently selling its entitlement oil at prices in the mid-to-upper $30s per barrel, well below international benchmarks, as it continues to seek access to export markets or export pricing.
Genel said securing that access would more than double the free cash flow generated from the Tawke production sharing contract.
News Intelligence what this means for the company
Genel has restarted production at both its Tawke and Peshkabir fields in Kurdistan following the spring shutdown, with output returning in late June and mid-July respectively. The company's core constraint is not production capacity but market access: DNO is currently selling oil at mid-to-upper $30s per barrel, well below international benchmarks, and Genel states that securing export market access would more than double free cash flow from Tawke alone—a material upside if achieved, but one that remains contingent on resolving a geopolitical and commercial bottleneck outside the company's direct control.
The restart confirms production is resumable and approaching pre-shutdown levels, but the story underscores that Genel's cash generation is capped by a pricing discount of roughly 50% or more versus Brent. With net cash of $108 million at 30 June 2026 and the Capricorn acquisition pending, closing the export pricing gap is now the primary lever on near-term free cash flow and balance sheet flexibility.
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