The ongoing Middle East conflict has led TotalEnergies to shut down or prepare to shut down offshore production in Qatar, Iraq, and the UAE, impacting approximately 15% of the company's global output. This disruption underscores the effect of regional instability on global oil and gas supply chains amid surging crude prices above $100 per barrel.

Production Impact and Offsetting Factors

While offshore assets are affected, production from onshore UAE assets, representing about 210,000 barrels per day net to TotalEnergies, remains operational. The company stated that higher oil prices could largely offset the financial impact of these production losses. Specifically, an $8 per barrel increase in Brent crude prices would be enough to counter the expected 2026 cash flow contribution from its affected assets in Iraq, UAE offshore, and Qatar, based on a $60 per barrel benchmark.

Refinery and LNG Operations

Operations at the SATORP refinery in Saudi Arabia continue normally and are supplying the domestic market. Regarding liquefied natural gas (LNG), the shutdown of some production in Qatar is anticipated to have a limited effect on TotalEnergies' global LNG trading portfolio, with roughly 2 million tonnes of LNG potentially impacted in 2026.

Ongoing Monitoring

TotalEnergies is continuing to monitor the situation and will provide further updates if conditions change.