TotalEnergies outlines limited financial impact from Middle East conflict
TotalEnergies said the ongoing Middle East conflict has led to the shutdown or progressive shutdown of production in Qatar, Iraq and offshore UAE operations, affecting about 15% of the company’s total oil and gas output.
Onshore production in the UAE—representing roughly 210,000 bbl/d net to TotalEnergies—remains unaffected at this stage.
Despite the production losses, the company emphasized that the financial impact is more limited, as the affected barrels generate lower-than-average cash flow due to higher regional taxation. The shut-in volumes account for about 10% of upstream cash flow, and TotalEnergies said that higher oil prices could more than offset the lost production, noting that an $8/b increase in Brent would fully compensate for the expected 2026 cash flow impact from the affected assets.
Operations at the SATORP refinery in Saudi Arabia are continuing normally, supplying the domestic market, while the impact on LNG trading from Qatari shutdowns is expected to be limited to about 2 million tonnes in 2026, as most Qatari LNG is marketed by QatarEnergy.
TotalEnergies added that the bulk of its production growth in 2026 is expected to come from outside the Middle East, and it will continue monitoring the situation for any material changes.
About a week ago, the company posted this message on its LinkedIn in regard to the conflict in the Middle East:
"Considering the crisis in the MiddleEast, TotalEnergies has decided to organize the return of employees' families present in several countries in the region. To this end, TotalEnergies has mobilized logistical resources and is coordinating its actions with local authorities.
TotalEnergies is fully committed to closely monitoring developments of the situation in order to implement the most appropriate measures for its staff and the facilities' operations in close connection with all its partners.
TotalEnergies expresses its solidarity with the populations who are suffering the consequences of this conflict and reaffirms its commitment towards all its partners."
