TotalEnergies Faces Major Production Decline Amid Middle East Crisis

TotalEnergies reports a 15% drop in oil and gas output due to the U.S.-Israeli conflict with Iran affecting fields in the Middle East. The company predicts that rising oil prices will offset this loss, while the impact on LNG production in Qatar remains limited.

TotalEnergies has reported a significant decrease of 15% in its oil and gas production as the U.S.-Israeli conflict with Iran disrupts operations across the Middle East, including fields in the UAE, Qatar, and Iraq, according to a statement on its investor website. The French energy company highlighted that this reduction represents about 10% of its upstream cash flow.

This marks the first official acknowledgment of widespread output disruptions in the UAE tied to the ongoing crisis. While Qatar and Iraq had previously disclosed production cutbacks, the UAE hadn't made any formal announcements until this revelation. TotalEnergies confirmed that its offshore production in the UAE is currently halted, noting that roughly half of the nation's oil output stems from offshore fields.

The company also mentioned that an $8 increase per barrel in oil prices, spurred by the conflict, will compensate for this year's production losses as it ramps up additional output elsewhere. Moreover, operations at the SATORP refinery in Saudi Arabia continue unaffected, and the impact on Qatar's liquefied natural gas production is limited to two million tonnes.

(With inputs from agencies.)