ConocoPhillips said on June 8 that production and exports of LNG from an investment project in Qatar have not been affected by growing Middle East diplomatic tensions.
Saudi Arabia, Bahrain, Egypt and the United Arab Emirates on June 5 cut ties with Qatar, accusing the country of supporting extremism. Qatar has denied the allegations.
Concerns have grown that global access to Qatar's LNG could be cut especially after some Persian Gulf ports said they would not accept Qatari-flagged vessels.
Houston-based ConocoPhillips owns a 30% stake in an LNG project operated by Qatargas Operating Co Ltd., part of the state-controlled energy company. Mitsui & Co Ltd owns a remaining 1.5% stake in the project, which processes about 1.4 Bcf/d of gas.
“Production and the export of LNG from our operations have not been impacted” by the diplomatic tension, ConocoPhillips spokeswoman Emma Ahmed said in a statement to Reuters.
The investment was worth $869 million to ConocoPhillips at the end of 2016, according to regulatory filings.
The U.S. company loaned $1.2 billion to develop the Qatari LNG project in 2005, with roughly $696 million still to be paid back.
ConocoPhillips also controls the Golden Pass LNG facility in the U.S. along with ExxonMobil Corp. and Qatar Petroleum.
None of the LNG produced in Qatar, though, is sold in the U.S.
Shares of ConocoPhillips were down slightly to $80.86 in afternoon trading.
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