French energy giant TotalEnergies halts production in Qatar, Iraq and UAE due to Middle East conflict, but high oil prices offset losses.
PARIS: TotalEnergies has shut down 15% of its total oil and gas production due to the war in the Middle East.
The French energy major confirmed the shutdowns are in Qatar, Iraq and UAE offshore assets.
It stated that higher oil prices would more than compensate for the lost production from these regions.
“A $8 per barrel increase in the Brent price is enough to offset the expected 2026 cash flow from operations from our Iraq, Qatar, UAE offshore assets at $60 per barrel,” the company said.
The Brent crude benchmark soared over $100 per barrel, a near two-thirds increase from around $60 at the start of the year.
This price is up approximately 38% since the conflict began on February 28.
Retaliatory strikes have severely disrupted maritime traffic through the critical Strait of Hormuz.
Around one-fifth of the world’s oil and liquefied natural gas passes through this strait.
TotalEnergies describes itself as the world’s third-largest liquefied natural gas player.
