ExxonMobil is set to take over operatorship of the Papua LNG project from TotalEnergies as the multibillion-dollar development moves closer to a final investment decision expected later this year.
Under the new arrangement, TotalEnergies will reduce its stake in the project from 29.1 per cent to 20 per cent by selling a 9.1 per cent interest to its partners. ExxonMobil’s share will rise to 34.1 per cent, making it the project’s operator.
The change is expected to create operational and construction efficiencies because ExxonMobil already operates the nearby PNG LNG project. The company will therefore be able to coordinate activities between the two major developments.
Santos will also increase its interest in Papua LNG to 21 per cent after acquiring an additional 3.3 per cent stake for $189 million. Japan’s ENEOS Xplora will hold 2.4 per cent, while Papua New Guinea’s state-linked entities will jointly retain a significant interest.
The project is expected to produce about 5.6 million tonnes of liquefied natural gas annually from the Elk and Antelope gas fields in Papua New Guinea’s Gulf Province.
Project partners have also reduced the estimated development cost to about $14 billion after design changes and the re-tendering of major construction contracts generated nearly $4 billion in savings since 2024.
With key commercial and contractual issues now addressed, the partners are working towards making the final investment decision in the fourth quarter of 2026.
