Papua LNG: TotalEnergies to Transfer Operator Role to ExxonMobil
The oil and gas group has presented a series of contractual and commercial agreements that bring the Papua LNG gas project closer to its final investment decision. TotalEnergies will reduce its stake to 20%, while maintaining its share of the project's LNG volumes.
Investment Cost Reduced to Approximately 14 Billion Dollars
TotalEnergies announced on September 7, 2026 the completion of several key milestones for the Papua LNG project in Papua New Guinea. The group indicates that EPC calls for tenders have been finalized, with award recommendations ready for approval by project partners. Since 2024, nearly 4 billion dollars in savings have been achieved through optimization of project design, notably through the development of an alternative upstream condensate scheme in synergy with PNG LNG, and the relaunch of calls for tenders among an expanded panel of Asian EPC service providers. These elements bring the project's investment cost to approximately 14 billion dollars. The project aims to develop gas resources from the Elk and Antelope fields in the Gulf Province, for production of 5.6 Mt/year of LNG primarily intended for Asian markets.
Transfer of Operator Role and New Allocation of Stakes
TotalEnergies has decided to transfer the operator role to ExxonMobil, already operator of PNG LNG, in order to maximize synergies. To enable ExxonMobil to increase its stake, TotalEnergies will cede an interest of 9.1% (after exercise of Kumul Petroleum's entry right) to its partners, pro rata to their existing participation, and will retain a stake of 20% while maintaining its share of LNG volumes. Following these transactions, stakes in the project will be distributed between ExxonMobil (34.1%, operator), Santos (21.0%), TotalEnergies (20%), Kumul Petroleum Holdings Limited and MRDC (22.5%) as well as ENEOS Xplora (2.4%). The group has also finalized the amendment to the Gas Agreement signed in 2019 with the Government of Papua New Guinea, in order to strengthen the economic robustness of the project, particularly in a low cycle environment, while preserving the long-term fiscal interests of the State. It has also created a joint venture for LNG marketing with Papua New Guinean public entities participating in the project, represented by Kumul Petroleum Holdings Limited. This joint venture will market 2.4 Mt/year of LNG, which will support project financing, and an LNG purchase agreement (Heads of Agreement) concluded with its parties will allow TotalEnergies to access a volume of 1.5 Mt/year to supply its global portfolio.
