Report by: Runbin
In the first half of 2025, a total of 12,311,833 barrels of oil were produced in the Tawke Production Sharing Contract (PSC) area (Tawke–Peshkabir). The average selling price per barrel was $33 in the domestic market.
The total revenue from the field amounted to $472,290,473. Out of this amount, Genel Energy and DNO earned $142,112,000 as profit and cost recovery. The amount left for the government in the first half of 2025 was $330,178,000.
In a webinar attended by Runbin on the morning of Wednesday, August 6, 2025, Genel Energy released its Kurdistan Region activity report for the first half of 2025.
Genel Energy’s CEO, Paul Weir, and CFO, Luke Clements, delivered the presentation. The company currently operates only in the Tawke PSC area in Kurdistan.
Paul stated:
“The Tawke PSC has delivered strong production performance, meeting ongoing domestic demand in the first half of 2025. Along with reduced expenditure compared to 2024, this has created strong free cash flow.”
He also said:
“We currently have a cash balance of $225 million. This strong financial position allows us to maintain liquidity, invest in new production capacity, and diversify geographically, in line with our strategy.”
Paul noted that in July, oil operations of several international oil companies in the Kurdistan Region were targeted by drone attacks, and Tawke was among the sites affected.
“We are pleased to confirm there were no human casualties. However, recent events in the Middle East have heightened security awareness in Kurdistan. We have reduced on-site staff to the minimum necessary. The operational impact of the attacks is still being assessed, and future production plans will be adjusted accordingly. At the same time, we are continuing to assess damage, reduce site staff, strengthen safety protocols, and implement necessary repairs for a full production restart.”
The CEO added:
“We expect the financial impact of these damages and production delays to be limited, thanks to ongoing cost control and insurance coverage for such incidents. We continue to provide guidance that no material change to our year-end cash outlook is expected.”
In the webinar, Luke commented on the challenging political situation in Iraq and the uncertainty over when the Iraq–Turkey export pipeline will reopen or when a comprehensive agreement will be reached.
“What we and other international oil companies want is clear: a written guarantee that our contractual rights under the ‘Production Sharing Contract’ will be protected, and that our entitlements will be honored as agreed. The current agreed cost recovery price per barrel is $16, although the actual cost per barrel is higher.”
In response to a question submitted earlier by Runbin regarding damages and current production levels at Tawke, Paul said:
“Due to the drone attacks, a small storage tank at Tawke was completely destroyed and will not be repaired. One production unit at Peshkabir was also damaged. The production impact is minor, but production at the field has been halted since the attacks. Regarding compensation for these damages, we have insurance and are in discussions with the insurer to finalize claims, which will cover both physical damage and lost production for the affected period. At this stage, we cannot say more as talks are ongoing.”
Production Levels at Tawke Field
Genel Energy owns a 25% stake in the Tawke PSC area (Tawke and Peshkabir fields), while DNO holds 75%. Tawke is the second-largest oil field in the Kurdistan Region after Khurmala.
In Q1 2025, average production from the PSC area was 82,081 barrels/day, while in Q2 2025 production fell to 74,760 barrels/day, resulting in a first-half average of 78,421 barrels/day.
Genel’s share was 19,605 barrels/day, and DNO’s share was 58,815 barrels/day. The Q2 decline was partly due to a 12-day shutdown caused by the Iran–Israel conflict.
The average domestic selling price for Tawke oil was $33/bbl, compared to the global Brent benchmark price of $72/bbl, a discount of $39, meaning the price was less than 54% of Brent.
In H1 2024, the domestic price averaged $34/bbl, and the full-year 2024 average was $35/bbl. The operating expense (Opex) per barrel was less than $4.
Runbin’s Breakdown
According to Runbin, in H1 2025 a total of 14,311,833 barrels of oil were produced in the Tawke PSC area (Tawke–Peshkabir), sold domestically at an average price of $33/bbl, generating $472,290,473 in total revenue.
Genel Energy earned $35,846,000 in profit and cost recovery, while DNO earned $106,265,000. The amount left for the government was $330,178,000 in the first half of 2025.
Overview of the Tawke PSC Area
The Tawke PSC is located in Dohuk province in the Kurdistan Region and includes the Tawke and Peshkabir oil fields. DNO (Norway) owns 75%, and Genel Energy (Turkey) owns 25%.
The PSC was first signed with DNO in 2004. Tawke production began in 2007, and Peshkabir production in 2017. Average daily production in 2025 is around 80,000 barrels/day.
From 2006 to the present, the Tawke PSC area has produced a total of 83 million barrels (68 million from Tawke and 15 million from Peshkabir). Currently, 52 million barrels remain producible.
In 2015, a 44 km pipeline to Peshkabir was completed, along with two new production facilities, raising total processing capacity from 120,000 to 200,000 barrels/day.
In 2015, production reached its peak at 186,000 barrels/day following the drilling of 10 new wells, doubling output. The annual average in 2015 was 144,490 barrels/day, but production has since been in steady decline. Tawke is considered a mature field, having produced 65.38% of its recoverable reserves. Based on economic assumptions, production is expected to continue until 2043, when the field will no longer be economically viable.
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