Mar 16, 2026
TotalEnergies Downplays the Impact of War on Its Operations
TotalEnergies SE announced on Friday that it is halting production in Qatar, Iraq, and the Emirati offshore regions, while stating that growth in other areas and rising oil prices will protect the company from the ongoing conflict in the Middle East.
These production stoppages account for approximately 15 percent of the French company's output. In an online statement, TotalEnergies mentioned, "The cash flow from operations for barrels in the Middle East is lower than our portfolio average because of higher taxes, and these 15 percent represent around 10 percent of our upstream cash flow."
The company confirmed that its onshore production in the United Arab Emirates, which amounts to roughly 210,000 barrels per day, is unaffected.
TotalEnergies also indicated that operations at the Satorp refinery are proceeding normally and continue to supply the domestic Saudi market. This joint venture with Saudi Arabian Oil Co has a stated capacity of 460,000 barrels per day, with TotalEnergies holding a 37.5 percent stake.
Regarding LNG trading activities, TotalEnergies stated that the impact of production shutdowns in Qatar is limited (with about 2 million tons expected in 2026) since most Qatari LNG is marketed by QatarEnergy.
Earlier this month, QatarEnergy declared force majeure on its LNG operations following military attacks on its facilities in Ras Laffan and Mesaieed. Qatar's Foreign Affairs Ministry mentioned that "full supply will resume once the situation stabilizes and the safety of facilities is ensured."
TotalEnergies added that it anticipates significant growth from outside the Middle East by 2026, noting that higher oil prices can more than compensate for the lost production from the region. An increase of $8 per barrel in the Brent price is projected to offset the expected cash flow from its assets in Iraq, UAE offshore, and Qatar at $60 per barrel.
Previously, TotalEnergies aimed for a 3 percent increase in oil and gas production in 2026 compared to 2025, when it averaged 2.53 million barrels of oil equivalent daily. This growth is expected to stem from ramp-ups of projects initiated last year and new launches anticipated in 2026.
Recently, TotalEnergies announced that the Lapa Southwest project has started production, raising the oil production capacity in the Lapa field in Brazil's Santos basin to around 60,000 barrels per day. The company operates the Lapa field with a 48 percent stake.
Last month, TotalEnergies and Libya's National Oil Corp restarted operations at the Mabruk field, which had been shut down since 2015 following a reported terrorist attack. The restart capacity is estimated at 25,000 to 30,000 barrels per day.
Other projects TotalEnergies plans to bring online this year include North Field East in Qatar, Ratawi in Iraq, TFT II & South in Algeria, and Tilenga in Uganda.
The quarterly report noted, "These new barrels will support a 7 percent increase in cash flow at $60 per barrel, which is higher than production growth." The company aims to maintain its competitive edge by keeping production costs below $5 per barrel through effective operational discipline.
These production stoppages account for approximately 15 percent of the French company's output. In an online statement, TotalEnergies mentioned, "The cash flow from operations for barrels in the Middle East is lower than our portfolio average because of higher taxes, and these 15 percent represent around 10 percent of our upstream cash flow."
The company confirmed that its onshore production in the United Arab Emirates, which amounts to roughly 210,000 barrels per day, is unaffected.
TotalEnergies also indicated that operations at the Satorp refinery are proceeding normally and continue to supply the domestic Saudi market. This joint venture with Saudi Arabian Oil Co has a stated capacity of 460,000 barrels per day, with TotalEnergies holding a 37.5 percent stake.
Regarding LNG trading activities, TotalEnergies stated that the impact of production shutdowns in Qatar is limited (with about 2 million tons expected in 2026) since most Qatari LNG is marketed by QatarEnergy.
Earlier this month, QatarEnergy declared force majeure on its LNG operations following military attacks on its facilities in Ras Laffan and Mesaieed. Qatar's Foreign Affairs Ministry mentioned that "full supply will resume once the situation stabilizes and the safety of facilities is ensured."
TotalEnergies added that it anticipates significant growth from outside the Middle East by 2026, noting that higher oil prices can more than compensate for the lost production from the region. An increase of $8 per barrel in the Brent price is projected to offset the expected cash flow from its assets in Iraq, UAE offshore, and Qatar at $60 per barrel.
Previously, TotalEnergies aimed for a 3 percent increase in oil and gas production in 2026 compared to 2025, when it averaged 2.53 million barrels of oil equivalent daily. This growth is expected to stem from ramp-ups of projects initiated last year and new launches anticipated in 2026.
Recently, TotalEnergies announced that the Lapa Southwest project has started production, raising the oil production capacity in the Lapa field in Brazil's Santos basin to around 60,000 barrels per day. The company operates the Lapa field with a 48 percent stake.
Last month, TotalEnergies and Libya's National Oil Corp restarted operations at the Mabruk field, which had been shut down since 2015 following a reported terrorist attack. The restart capacity is estimated at 25,000 to 30,000 barrels per day.
Other projects TotalEnergies plans to bring online this year include North Field East in Qatar, Ratawi in Iraq, TFT II & South in Algeria, and Tilenga in Uganda.
The quarterly report noted, "These new barrels will support a 7 percent increase in cash flow at $60 per barrel, which is higher than production growth." The company aims to maintain its competitive edge by keeping production costs below $5 per barrel through effective operational discipline.