TotalEnergies, led by CEO Patrick Pouyanné, has warned that escalating conflict in the Middle East is disrupting its operations, with up to 15% of its global production at risk.
The company said it has either halted or is preparing to halt offshore production in Qatar, Iraq, and the United Arab Emirates. This development underscores how geopolitical instability is increasingly straining global oil and gas supply chains, especially as crude prices climb past $100 per barrel.
However, onshore operations in the UAE—accounting for about 210,000 barrels per day net to the company—remain unaffected for now.
Despite the disruption, TotalEnergies indicated that higher oil prices could help cushion the financial blow. It explained that an $8 rise in Brent crude prices would offset the projected 2026 cash flow from its affected assets, assuming a base price of $60 per barrel.
TotalEnergies CEO Patrick Pouyanné
Meanwhile, the SATORP refinery in Saudi Arabia continues to operate normally, supplying the domestic market.
The company also noted that the shutdown of certain LNG facilities in Qatar is expected to have only a limited effect on its global trading portfolio, with around 2 million tonnes of LNG potentially impacted in 2026.
TotalEnergies said it is closely monitoring developments and will provide further updates as the situation evolves.
