TotalEnergies SETotalEnergies says redesign and contractor rebidding cut Papua LNG development spending by nearly $4 billion, to about $14 billion, supporting project economics.
ExxonMobil Holdings Corporation agreed to increase its Papua LNG interest from 28.7% to 34.1% and assume operatorship of the project, according to a disclosure dated September 7. TotalEnergies SE said redesign and contractor rebidding have cut estimated development spending by nearly $4 billion since 2024, to approximately $14 billion, for a project designed to produce 5.6 million tonnes of liquefied natural gas annually. Papua LNG targets a fourth-quarter 2026 final investment decision, and Santos Limited has disclosed that FID is a closing condition for its own stake acquisition, though the operatorship announcement did not specify an equivalent condition. TotalEnergies SE and Papua New Guinea's state-related entities established a marketing joint venture for 2.4 million tonnes annually, and TotalEnergies SE also signed a heads of agreement to purchase 1.5 million tonnes annually for its global portfolio. The partners amended the government gas agreement to reflect the revised budget, which TotalEnergies SE says supports project economics in weaker markets while preserving the state's fiscal interests.
TotalEnergies SETotalEnergies says redesign and contractor rebidding cut Papua LNG development spending by nearly $4 billion, to about $14 billion, supporting project economics.
Exxon Mobil CorpExxonMobil raises its Papua LNG stake from 28.7% to 34.1% and takes operatorship of the project.
Santos disclosed that Papua LNG's FID is a closing condition for its own stake acquisition, but the operatorship announcement gave no equivalent condition.