TotalEnergies Reports 15 Percent Output Drop in Middle East

TotalEnergies SE has reported a 15% decline in its oil and gas production as the ongoing conflict involving the United States, Israel, and Iran forces the closure of major energy fields across the Middle East. The France-based energy major disclosed the figures on its investor website, noting that the affected output represents approximately 10% of its upstream cash flow. The announcement provides the first official confirmation of significant production disruptions in the United Arab Emirates resulting from the regional crisis. While Qatar and Iraq had previously signaled production cuts, the Emirati government had not released official data regarding the status of its operations. According to the company, its offshore production in the United Arab Emirates is currently offline, a significant development given that offshore fields typically account for half of the nation's total oil output. Despite the volume losses, the firm indicated that a surge in Brent Crude Oil prices, which have risen by $8 per barrel due to the war, is expected to more than offset the financial impact of the Middle Eastern shutdowns this year. This recovery is further supported by the company's efforts to bring additional production online in other global regions. Meanwhile, operations remain stable at the SATORP refinery located in Saudi Arabia, where the company reported normal activity. In Qatar, the impact on liquefied natural gas production has been limited to a reduction of two million tonnes for the French major.