TotalEnergies said Thursday it had shut down 15 percent of its total oil and gas production due to the war in the Middle East.
“Production has been shut down or is in the process of shutting down in Qatar, Iraq and UAE offshore, representing approximately 15 percent of our total output,” the French oil and gas major said.
TotalEnergies said however that higher oil prices would more than compensate for the loss of Middle East production.
“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.
Brent North Sea, the benchmark international oil contract, started the year around $60 per barrel but shot up over $100 per barrel on Thursday, an increase of nearly two-thirds.
Brent is up around 38 percent from the eve of the conflict, which began on February 28 when the United States and Israel launched airstrikes against Iran.
Tehran’s retaliatory strikes on shipping and Gulf neighbours have nearly cut off maritime traffic through the Strait of Hormuz, through which pass around a fifth of the world’s oil and liquefied natural gas.
TotalEnergies says it is the world’s third largest liquefied natural gas (LNG) player and is also involved in oil and renewable energies.
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