Papua LNG project development

TotalEnergies has announced major contractual and commercial milestones for the Papua LNG project in Papua New Guinea, moving the venture closer to a Final Investment Decision (FID).

As part of a strategic shift to maximize synergies with the neighboring PNG LNG project, ExxonMobil will take over as the project operator. To facilitate this, TotalEnergies will sell a 9.1% interest to its partners, retaining a 20% stake while maintaining its share of LNG offtake. Additionally, Santos has previously agreed to purchase a 3.3% interest, bringing its total stake to 21%.

The project's estimated capital expenditure has been reduced to approximately $14 billion, following nearly $4 billion in cost savings achieved through design optimization and the renegotiation of EPC contracts with Asian contractors.

Key developments also include the finalization of an amended gas agreement with the Government of Papua New Guinea and the establishment of an LNG marketing joint venture with Kumul Petroleum Holdings Limited. This venture will manage the commercialization of 2.4 million metric tons of LNG per year from the project's total expected production of 5.6 million metric tons per annum.