War-hit Saudi refinery reopens, TotalEnergies capitalises on oil price spike
French energy major TotalEnergies has resumed operations at its Satorp refinery in Saudi Arabia after the facility was partially shut down due to damage from airstrikes earlier this month, the company said on Wednesday.
The refinery, which is jointly owned by Saudi Aramco and TotalEnergies, restarted its unaffected units in mid-April and has been operating at a capacity of around 230,000 barrels per day since April 14. The shutdown had followed incidents on April 8 that impacted three units at the site, prompting a temporary halt as a precautionary safety measure.
Despite disruptions in the Gulf region linked to the ongoing Middle East conflict, TotalEnergies reported a strong financial performance for the first quarter. The company posted a net profit of $5.8 billion, marking an increase of nearly 50%.
The surge in earnings was largely driven by higher global oil prices, which have been supported by geopolitical tensions in the Middle East. TotalEnergies said that increased production across its global oil and gas operations helped offset losses in the Gulf, which accounts for roughly 15% of its overall oil and gas business.
The Satorp refinery is a major component of Saudi Arabia’s downstream energy infrastructure and plays an important role in supplying refined petroleum products to global markets. The swift resumption of operations underscores efforts by both partners to maintain continuity amid ongoing conflict-related disruptions.
Energy markets have remained sensitive to developments in the Middle East, with supply concerns continuing to influence oil prices and industry performance globally.
With AFP inputs