TotalEnergies' Saudi Arabia refinery will not be fully repaired until early 2027, CEO says
TotalEnergies' SATORP oil refinery in Saudi Arabia, which was hit by three drones in April, is still running only at 70% capacity and will not be fully repaired until early 2027, the company's Chief Executive Patrick Pouyanne said on Wednesday.
Pouyanne, speaking during a hearing by the French lower house's economic affairs commission on the Middle East crisis, said re-opening the Strait of Hormuz following a deal to end the U.S. war in Iran would not immediately solve the energy crunch, due to damaged Middle East refineries that previously exported high amounts of diesel and jet fuel to Europe.
"Many of those refineries are larger and more modern. For example, our Saudi Arabian refinery underwent damage by three drone strikes - it's currently running at about 70% capacity, and probably won't be fully repaired until after this year is over," he said.
The parliamentary hearing also touched on the subject of a superprofit tax, which has gained momentum in France given Total's war-related earnings boost.
Pouyanne reminded that Total was the only firm voluntarily capping prices at the pump for French drivers, and warned any tax would have to comply with international treaties to avoid double taxation.
"Any gain in market share we've seen from this price cap has been offset by the financial losses of selling below market price in France," Pouyanne added.
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