TotalEnergies gained 1.5% to 77.27 on Monday after announcing it will sell a 9.1-percentage-point stake in Papua LNG to existing partners, reducing its ownership from 29.1% to 20% and handing project control to Exxon Mobil. The company retains access to gas without carrying the same construction burden. Design revisions and fresh contract bids have cut projected development costs by nearly $4 billion to roughly $14 billion. Papua LNG is designed to produce 5.6 million tonnes annually, primarily for Asian customers, while TotalEnergies retains 1.5 million tonnes of yearly offtake. The partners aim for a final investment decision in the fourth quarter. TotalEnergies' theoretical share of the budget drops from about $4.07 billion to $2.8 billion, reducing its exposure by roughly $1.27 billion before adjustments. The shares trade 39.71% above their $63.41 GF Value estimate, and with $9.8 billion of second-quarter cash flow, the company can fund its remaining commitment.
TotalEnergies SETotalEnergies reduces stake and capital exposure, retaining offtake, with shares up 1.5%.
Exxon Mobil CorpExxon Mobil gains control of Papua LNG project, enhancing its strategic position.
