دبي – French energy major TotalEnergies announced on Monday that it will sell a 9.1 percent stake in the joint Papua liquefied natural gas project to its existing partners. The company stated that it will assign the management of the project to Exxon Mobil as part of this strategic restructuring.
TotalEnergies, which co-owns the project alongside Exxon, Santos, Cumul Petroleum-MRDG, and Ineos Explore, confirmed it will sell shares to partners proportionate to their current holdings. Consequently, TotalEnergies will retain a 20 percent stake in the venture. The firm did not disclose the specific price for the sold shares during the transaction.
Santos Increases Ownership
In connection with the divestment process, Australian company Santos announced it acquired an additional 3.3 percent stake in the project for $189 million. This acquisition raises Santos’s total ownership to 21 percent and increases its LNG production by approximately 19 percent, reaching roughly 1.2 million metric tons annually.
Santos clarified that the deal is conditional upon the Papua LNG project making a final investment decision, expected in the last quarter of 2026. TotalEnergies affirmed that necessary contractual and commercial hurdles have been cleared to facilitate this decision.
Operational Efficiency and Cost Savings
The Papua LNG project is part of TotalEnergies’ portfolio aimed at increasing low-cost LNG supplies. It produces 5.6 million tons annually from the Elk and Antelope fields in Papua New Guinea, primarily targeting Asian buyers. Exxon, which already manages the adjacent Papua New Guinea LNG plant, will now oversee the project.
An Exxon Mobil spokesperson noted that granting management of both projects to Exxon should enhance coordination, improve execution efficiency, and support the development of world-class LNG resources in Papua New Guinea. TotalEnergies also completed its bidding process for engineering, procurement, and construction works, with contracts awaiting partner approval.
The company highlighted cost savings of nearly $4 billion since 2024 through contract re-bidding and design improvements, reducing capital expenditure to approximately $14 billion. Modified gas agreements with the Papua New Guinea government were signed, establishing a marketing joint venture with Cumul Petroleum to sell 2.4 million tons annually.
TotalEnergies’ production share remains unchanged, allowing it to receive 1.5 million tons annually for its investment portfolio, ensuring continued revenue streams despite the reduced equity stake and transferred management responsibilities.
This story was produced in the newsroom from the disclosed sources named above.
