TotalEnergies has announced the halt or impending shutdown of its production activities in Qatar, Iraq, and offshore operations in the United Arab Emirates (UAE), which together constitute roughly 15% of the company’s total output.
Despite this, onshore production in the UAE, which accounts for around 210,000 barrels per day (bpd) under TotalEnergies’ share, currently remains unaffected by the ongoing conflict in the Middle East.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The French energy company noted that cash flow from operations (CFFO) for its Middle Eastern production is below its portfolio average, primarily due to higher taxation rates.
The volumes compromised by these shutdowns contribute around 10% of TotalEnergies’ upstream cash flow.
However, TotalEnergies anticipates that future growth in its high-value barrels will largely originate from regions outside the Middle East by 2026.
This shift is expected to mitigate the production losses from the Middle East, with an increase of $8 per barrel (bbl) in Brent crude prices being sufficient to counterbalance the projected CFFO reduction from assets in Iraq, offshore UAE and Qatar at a price of $60/bbl.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataMeanwhile, operations at the Satorp refinery continue without disruption and are currently fulfilling demand within the Saudi Arabian domestic market.
The company also indicated that the impact of liquefied natural gas (LNG) production halts in Qatar on its LNG trading activities is minimal.
Only around two million tonnes are expected to be affected by 2026 since most Qatari LNG is marketed by QatarEnergy.
TotalEnergies remains vigilant regarding developments in the region and has pledged to provide updates if significant changes occur.
Earlier this month, the company restarted production at the Mabruk onshore oilfield in Libya following the completion and commissioning of a new production unit.
