TotalEnergies has announced that the ongoing conflict in the Middle East is impacting part of its upstream operations, with production shut down or in the process of shutting down in Qatar, Iraq, and offshore fields in the UAE.

These disruptions represent about 15 per cent of the company’s total production.

However, onshore production in the UAE—accounting for roughly 210,000 barrels per day for TotalEnergies—remains unaffected at this stage.

The company noted that barrels produced in the Middle East typically generate lower cash flow from operations compared to its global portfolio due to higher taxation. Although the affected volumes represent 15 per cent of production, they contribute around 10 per cent of the company’s upstream cash flow.

Looking ahead to 2026, TotalEnergies expects most growth in its high-margin production to come from projects outside the Middle East.

The company said that an increase of $8 per barrel in the Brent crude price would offset the expected 2026 cash flow from its assets in Iraq, UAE offshore and Qatar at an oil price assumption of $60 per barrel.

Meanwhile, operations at the Satorp refinery in Saudi Arabia are continuing normally and are supplying the domestic market.

The company also said the shutdown of LNG production in Qatar will have limited impact on its LNG trading activities—estimated at around 2 million tonnes in 2026—since most Qatari LNG is marketed by QatarEnergy.

TotalEnergies said it continues to monitor the situation closely and will provide updates if there are any significant changes. -OGN/TradeArabia News Service