PARIS: French energy major TotalEnergies (TTEF.PA) said on Monday it has been forced to shut down or is in the process of shutting down production operations in Qatar, Iraq, and offshore United Arab Emirates due to the ongoing regional conflict, impacting roughly 15% of the company’s total output.
In a statement confirming information released on its website last week, the company provided the first detailed quantification of the conflict’s impact on its portfolio.
The affected assets represent a disproportionate share of production relative to cash flow due to higher taxation in the region. TotalEnergies stated that while the impacted volumes account for 15% of its total output, they represent only about 10% of its Upstream cash flow.
Onshore production in the UAE, which accounts for approximately 210,000 barrels per day (b/d) of the company’s share, remains unaffected at this stage, the company added.
Despite the disruptions, TotalEnergies sought to reassure investors that the financial impact could be mitigated by current market conditions. The group noted that its growth in high-margin barrels is expected to come from outside the Middle East in 2026. As a result, a higher oil price environment is more than compensating for the lost volumes.
“A $8 per barrel increase in the Brent price is enough to offset the expected 2026 cash flow from our Iraq, UAE offshore and Qatar assets at a $60/b baseline,” the company said.
In the refining sector, TotalEnergies reported that operations at the Satorp refinery in Saudi Arabia are continuing normally, with supplies currently directed to the domestic market.
The company also downplayed the impact on its global liquefied natural gas (LNG) trading business. It stated that the effect of production shutdowns in Qatar is expected to be limited, around 2 million tons in 2026, as the majority of Qatari LNG is marketed by QatarEnergy (QE).
TotalEnergies said it is continuing to monitor the situation on the ground closely and will provide updates in the event of any material changes.