TotalEnergies reduces output by 15% amidst Middle East conflict

Group 1 - TotalEnergies has announced the halt or impending shutdown of production activities in Qatar, Iraq, and offshore UAE, which together constitute roughly 15% of the company's total output [1] - Onshore production in the UAE, accounting for around 210,000 barrels per day (bpd), remains unaffected by the ongoing conflict in the Middle East [1] - Cash flow from operations (CFFO) for TotalEnergies' Middle Eastern production is below the portfolio average due to higher taxation rates, with the compromised volumes contributing around 10% of the upstream cash flow [2] Group 2 - Future growth in high-value barrels is anticipated to originate from regions outside the Middle East by 2026, which is expected to mitigate production losses from the region [2] - An increase of $8 per barrel in Brent crude prices could counterbalance the projected CFFO reduction from assets in Iraq, offshore UAE, and Qatar at a price of $60/bbl [3] - Operations at the Satorp refinery continue without disruption, fulfilling demand within the Saudi Arabian domestic market [3] Group 3 - The impact of liquefied natural gas (LNG) production halts in Qatar on TotalEnergies' LNG trading activities is minimal, with only around two million tonnes expected to be affected by 2026 [4] - Most Qatari LNG is marketed by QatarEnergy, limiting the impact on TotalEnergies [4] - TotalEnergies has pledged to provide updates on significant changes regarding developments in the region [4] Group 4 - Earlier this month, TotalEnergies restarted production at the Mabruk onshore oilfield in Libya following the completion and commissioning of a new production unit [5]