In a portfolio move, TotalEnergies will transfer operatorship of Papua LNG to ExxonMobil as the partners prepare the development for a final investment decision. World Oil reported the change on September 7 after the project completed engineering, procurement and construction tendering and moved contract award recommendations to partner approval.
Design changes and a new round of bids from a broader group of Asian contractors have cut expected capital spending by nearly $4 billion since 2024. The revised estimate is about $14 billion.
TotalEnergies will sell a 9.1 percent interest to the other partners and retain 20 percent while keeping its LNG offtake share. After the transaction and the Papua New Guinea state back in, ExxonMobil will own 34.1 percent, Santos 21 percent, ENEOS Xplora 2.4 percent, and Kumul Petroleum Holdings and MRDC a combined 22.5 percent.
Papua LNG is designed to produce 5.6 million tonnes of LNG a year from the Elk and Antelope gas fields in Gulf Province. The plan includes gas processing facilities, a pipeline to the liquefaction site and LNG infrastructure near Port Moresby. A marketing venture between TotalEnergies and Papua New Guinea state entities will sell 2.4 million tonnes a year, while TotalEnergies has agreed terms to buy 1.5 million tonnes a year for its portfolio.