TotalEnergies Output Down 15% Amid Mideast Conflict

TotalEnergies, the French oil and gas major, announced on March 12 that its oil and gas output has decreased by 15% due to field shutdowns across the Middle East, including in the UAE, Qatar, and Iraq. This reduction, attributed to the U.S.-Israeli war with Iran, impacts approximately 10% of TotalEnergies' upstream cash flow. The company confirmed widespread output outages in the UAE, specifically noting the shutdown of its offshore production, which accounts for about half of the UAE's total oil output.

While Qatar and Iraq had previously reported production cuts, TotalEnergies' statement provided the first confirmation of significant outages in the UAE. Despite the production losses, TotalEnergies anticipates that an $8 per barrel increase in oil prices, a consequence of the ongoing conflict, will more than offset the lost output in the Middle East this year, as it brings additional production online elsewhere. Operations at its SATORP refinery in Saudi Arabia remain normal, and the impact on its liquefied natural gas production from Qatar is limited to two million tonnes of LNG.