Santos Boosts Stake in Papua LNG Project for US$189 Million
Australia's Santos has agreed to pay US$189 million to raise its stake in the Papua LNG Project from 14% to 21%. This move comes ahead of a planned final investment decision later this year. The increased stake will give Santos a larger share of annual production, with the company set to receive 1.2 million tonnes of liquefied natural gas.
The deal follows a restructuring of the US$14 billion venture, which saw French energy group TotalEnergies trim its holding and ExxonMobil take over operations from TotalEnergies. The project has faced cost overruns, but design changes and contractor rebidding have reduced estimated construction costs by almost US$4 billion.
Santos CEO Kevin Gallagher said the Papua LNG Project is 'a world-class project' and that this was 'the right time to increase our position.' Following the announcement, the Santos share price rose 1.71% to $8.35 per share.