Papua LNG has reached a series of commercial and contractual milestones ahead of a final investment decision (FID), including a transfer of operatorship from TotalEnergies…
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Papua LNG has reached a series of commercial and contractual milestones ahead of a final investment decision (FID), including a transfer of operatorship from TotalEnergies to ExxonMobil and a reduction in estimated project capital expenditure to around $14 billion.
The EPC tendering process has been completed, with contract award recommendations ready for approval by the co-venturers. TotalEnergies said project design optimization and the rebidding of EPC packages since 2024 have generated close to $4 billion in cost savings.
As part of the revised structure, ExxonMobil will take over operatorship of Papua LNG from TotalEnergies, with the two companies to manage the transition while continuing project activities and commitments to the Papua New Guinea authorities and stakeholders.
TotalEnergies will also sell a 9.1% interest in the project, after the planned back-in by Kumul Petroleum, to the other Papua LNG partners in proportion to their existing participating interests. Following the transaction and the State's back-in, TotalEnergies will retain a 20% stake, while maintaining its LNG offtake share.
The revised ownership structure will leave ExxonMobil with 34.1% and operatorship, Santos with 21%, ENEOS Xplora with
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