French energy giant TotalEnergies will delay resuming production in the Middle East until shipping through the Strait of Hormuz stabilises, its chief executive said Wednesday, as the ongoing Iran conflict continues to disrupt global energy flows.
Chief Executive Patrick Pouyanné said around 15 percent of the company’s upstream oil and gas output remains shut in because it cannot safely transport cargoes through the narrow waterway, a critical route for global النفط shipments.
The group currently has nine tankers stranded in the strait, highlighting the scale of the disruption. One vessel managed to exit earlier this month, but another attempt was aborted after an attack on a nearby ship caused insurers to withdraw coverage, forcing the tanker to turn back.
“We will wait for a real stabilisation in the Strait of Hormuz before restarting operations,” Pouyanné said, noting that before the conflict roughly 50 oil tankers passed through the route daily.
He added that restarting production would take time even after conditions improve, due to logistical constraints such as clearing loaded vessels, repositioning empty tankers and the limited availability of liquefied natural gas (LNG) carriers.
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“Trips to Asia are about 25 days, longer to Europe… this is why we say it will take two to three months,” he said.
Production hit offset by prices
Despite the disruption, TotalEnergies said higher global oil prices and increased output from other regions have helped offset losses linked to the Middle East shutdown.
The Strait of Hormuz, which connects the Persian Gulf to global markets, handles a significant share of the world’s oil and gas exports, making it highly sensitive to geopolitical tensions.
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Analysts say prolonged instability in the region could continue to tighten supply and support elevated energy prices, even as companies adjust operations.
Projects continue despite tensions
While shipping disruptions have halted some production, TotalEnergies said several of its major projects in the region are continuing.
In Saudi Arabia, the SATORP refinery—jointly owned by TotalEnergies—has resumed operations and is expected to ramp up output to more than 300,000 barrels per day in the coming weeks.
The company’s $5 billion Amiral petrochemical complex in the kingdom is about 70 percent complete and remains on track for commissioning by late 2027 or early 2028.
In Qatar, the North Field East gas expansion project is expected to face only a minor delay of up to two months, with first exports still anticipated by late 2026 or early 2027.
Meanwhile, in Iraq, a solar power project has begun operations, while the first phase of the Ratawi oilfield expansion is expected later this year.
Strategic implications
The disruption underscores the vulnerability of global energy supply chains to geopolitical shocks, particularly in key transit routes such as the Strait of Hormuz.
Energy companies are increasingly balancing long-term investment commitments in the Middle East with short-term operational risks linked to regional instability.
For TotalEnergies, the immediate priority remains ensuring safe passage for its vessels before resuming full production, even as it continues to advance major projects that underpin its long-term growth strategy.
