(WO) — ExxonMobil will take operatorship of the Papua LNG project as the partners advance the $14 billion development toward a final investment decision (FID), TotalEnergies announced.
The partners have completed the EPC tendering process, with contract award recommendations now awaiting co-venturer approval. TotalEnergies said project design optimization and rebidding of EPC packages have generated nearly $4 billion in cost savings since 2024, reducing estimated project capex to approximately $14 billion.
As part of the updated development structure, TotalEnergies will transfer operatorship to ExxonMobil to capture construction and operating synergies with the existing PNG LNG project. TotalEnergies will also sell a 9.1% interest in Papua LNG to its partners, reducing its post-back-in stake to 20%, while maintaining its LNG offtake share.
Following the transactions and the Papua New Guinea government’s exercise of its back-in rights, ExxonMobil will hold a 34.1% interest and serve as operator. Santos will hold 21%, ENEOS Xplora 2.4%, and Kumul Petroleum Holdings Limited and MRDC a combined 22.5%.
“These agreements mark decisive step towards the Final Investment Decision of Papua LNG,” said Patrick Pouyanné, chairman and CEO of TotalEnergies. “The transfer of operatorship enhances the project’s value creation and competitiveness by leveraging the synergies with PNG LNG during construction and operations phases.”
The partners have also finalized an amended gas agreement with the Papua New Guinea government reflecting the revised project economics. TotalEnergies and Papua New Guinea state entities will establish an LNG marketing joint venture to commercialize 2.4 MMtpa from the project, supporting project financing.
Papua LNG is designed to produce 5.6 MMtpa of LNG from the Elk and Antelope gas fields in Papua New Guinea’s Gulf Province. The development includes gas processing facilities, a pipeline connecting the fields to the liquefaction site and LNG infrastructure near Port Moresby.
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