TotalEnergies shuts 15% of oil and gas production

2026-03-12 - 22:43

TotalEnergies ranked as the world’s third‐largest LNG player and also engaged in oil and renewable energy activities. (AFP pic) PARIS: TotalEnergies said Thursday it had shut down 15% 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% 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 US$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 US$60 per barrel,” the company said. Brent North Sea, the benchmark international oil contract, started the year around US$60 per barrel but shot up over US$100 per barrel on Thursday, an increase of nearly two-thirds. Brent is up around 38%t from the eve of the conflict, which began on Feb 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.