Santos Buys Into Papua LNG Amid ExxonMobil Operatorship Change

Santos Limited has acquired an additional 3.3 per cent participating interest in the Papua LNG project from TotalEnergies for about US$189 million, pending regulatory approvals and a final investment decision. The deal will increase Santos' stake in Papua LNG to 21 per cent.

The acquisition is expected to boost Santos' equity LNG output from the project by roughly 19 per cent to about 1.2 million tonnes per annum. ExxonMobil has taken over as operator of Papua LNG, which should deliver operational synergies and strengthen project execution, according to Santos.

The transaction aligns with Santos' capital allocation framework targeting a free cash flow breakeven oil price of US$45 to US$50 per barrel.