ConocoPhillips drops Qatar from production outlook

• Left out of Q2 plans
• In Qatar since 2003
• LNG export capacity down

Energy major ConocoPhillips left Qatar out of its second-quarter production outlook after the Iran war disrupted joint gas operations with QatarEnergy over the past two months.

Forced downtime in Qatar after February 28 “more than offset” a rise in ConocoPhillips’ output in the US, driving overall Q1 volume down from the same period last year, the company said yesterday in its latest earnings. 

The war-induced disruptions of oil and gas supplies has impacted energy markets as well as the global economy, according to Ryan Lance, ConocoPhillips chairman and CEO.

“We certainly hope for a swift and diplomatic solution that resolves the conflict, protects US interests, opens commerce, and provides stability in the region,” Lance said on an earnings call.

“While ongoing events have significantly tightened crude oil and LNG markets, the macro environment remains volatile and pretty impossible to predict.” 

ConocoPhillips’ production settled at the equivalent of 2.3 million barrels of oil-equivalent per day, 80,000 barrels lower than in the first three months of 2025.

“For the second quarter, the company is excluding Qatar from production guidance, given uncertainty surrounding the conflict in the Middle East,” the company said in a press release.

The Texas-based energy major expects full-year output of 2.295 to 2.325 million barrels of oil equivalent per day, including a 20,000 annualised hit from excluding Qatar volumes in the second quarter.

Qatar’s LNG export capacity was severely affected by Iranian strikes during March, with 17 percent taken offline at an annual cost of $20 billion. Qatari officials expect it will take years to repair the damage. 

ConocoPhillips’ Qatar operations

ConocoPhillips has been engaged in LNG production in the Gulf state’s North Field since 2003, signing on to an ongoing expansion of operations at the reservoir in 2022.

The company said on Thursday it is raising the outlook for annual capital expenditures to $12.5 billion from the previous $12 billion.

“The range reflects uncertainty around the macro environment and North Field East and North Field South capital timing in Qatar,” ConocoPhillips said.

• Arab LNG exports slump by a quarter with key facilities damaged
• Qatar rolls out support for foreign companies
• Qatar’s helium exports to Japan hit one-year low on Iran war

Chief financial officer Andy O’Brien separately said on the earnings call the company is downgrading its outlook for global oil demand to flat year-over-year with “probably a bit more risk to the downside if the conflict goes on”.

Markets have thus far enjoyed a grace period, as oil and gas-laden tankers that left the Gulf before the war were still on the water, according to O’Brien.

“Now [that] all of those have reached their destination, the impact of the lost supply is going to start to become more apparent,” he said.