DNO ASA Faces Production Halt Amid Explosions and Drone Attacks in Kurdistan

In a significant development for the energy sector, DNO ASA, a prominent Norwegian oil and gas operator, has temporarily suspended operations at its Tawke license in the Kurdistan region of Iraq. This suspension follows a series of explosions and drone attacks that have disrupted production activities in the area.

Explosions at Tawke and Peshkabir Fields

On the morning of July 16, 2025, DNO ASA reported three explosions at its Tawke field, one of which involved a small storage tank. The incidents have led to a temporary halt in operations as the company conducts an investigation. Additionally, an explosion occurred at the Peshkabir field, affecting the site’s surface treatment equipment. These events have compounded the challenges faced by DNO, as production was also previously suspended at the Sarsang oil field due to a separate explosion.

Drone Attacks on Oil Fields

Compounding the situation, DNO’s operations have been further disrupted by drone attacks. On the same day, two of DNO’s oil fields in northern Iraq were targeted, marking the third such attack on energy installations in the region this week. These attacks have raised concerns about the security of energy infrastructure in the area and have prompted a broader discussion about the stability of oil production in the Middle East and North Africa.

Market Reaction and Financial Implications

The disruptions at DNO’s key projects are likely to have significant financial implications. As of July 14, 2025, DNO ASA’s share price closed at 14.65 NOK, with a 52-week high of 15.36 NOK and a low of 9.31 NOK. The company’s market capitalization stands at 13.99 billion NOK, and it currently reports a negative price-to-earnings ratio of -27.62, reflecting the challenges it faces in the current environment.

Forward-Looking Perspective

As DNO ASA works to resume operations, the company’s ability to navigate these disruptions will be closely watched by investors and industry analysts. The temporary suspension of production at its flagship Tawke field, which holds approximately 239.7 million barrels of oil equivalent in proven reserves, underscores the vulnerability of energy assets in geopolitically sensitive regions.

The situation highlights the need for robust security measures and contingency planning to mitigate the impact of such incidents on production and financial performance. As DNO ASA assesses the damage and plans its next steps, the broader energy market will be keenly observing the developments in the Kurdistan region of Iraq.

For more information, DNO ASA can be reached through its website at www.dno.no , and it remains listed on the Oslo Bors ASA.