TotalEnergies has announced that the ongoing conflict in the Middle East is affecting some of its upstream operations. Production has been shut down or is being shut down in Qatar, Iraq, and offshore fields in the UAE. These disruptions account for about 15% of the company’s total production.
Onshore production in the UAE, which accounts for 210,000 barrels per day for TotalEnergies, remains unaffected at this time. Looking ahead to 2026, TotalEnergies anticipates most of its growth in high-margin production will come from projects outside the Middle East.
The company explained that barrels produced in the Middle East typically generate lower cash flow from operations compared to its global portfolio due to higher taxation. Despite the affected volumes representing 15% of production, they contribute around 10% of the company’s upstream cash flow.
The company said that an increase of US $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.
The company also mentioned that the shutdown of LNG production in Qatar will have limited impact on its LNG trading activities, which are estimated at around 2m tonnes in 2026. This is because most Qatari LNG is marketed by QatarEnergy. TotalEnergies stated that it continues to closely monitor the situation and will provide updates if there are any significant changes.
