TotalEnergies will not resume Middle East production until shipping transit through the Strait of Hormuz has stabilised, its CEO said on Wednesday.About 15% of Total's upstream oil and gas production is offline because it
TotalEnergies will not resume Middle East production until shipping transit through the Strait of Hormuz has stabilised, its CEO said on Wednesday.
About 15% of Total's upstream oil and gas production is offline because it is unable to ship cargoes through the Strait of Hormuz as the Iran war continues, though resulting higher oil prices and increased output in other regions have offset the company's Middle East losses.
The French oil major has nine tankers stuck in the strait, after one managed to make it out over the weekend of April 17. A second tanker chartered by the company tried to exit, only to be forced back into the Gulf when an Indian vessel in front of it was attacked, causing Total's tanker to lose its insurance cover.
"We will wait for a real stabilisation in the Strait of Hormuz before restarting operations. Before the war you had 50 oil tankers moving out of the Gulf every day," CEO Patrick Pouyanne told analysts after the company reported bumper first-quarter profit.
"Restarting the wells is not complicated, but you need to first let the full tankers out and offload somewhere, then bring in empty tankers to reload. Trips to Asia are
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