TotalEnergies Hands Papua LNG Reins to ExxonMobil Ahead of FID

TotalEnergies has reached significant milestones on its Papua LNG development project in Papua New Guinea, paving the way for a final investment decision (FID). As part of a strategic realignment to maximize operational synergies with the existing PNG LNG asset, TotalEnergies will transfer project operatorship to ExxonMobil.

TotalEnergies will sell a 9.1% stake to its co-venturers, retaining a 20% interest while preserving its dedicated LNG off-take share. The ownership restructure coincides with significant cost reductions following design optimisation and EPC tendering review.

The joint venture has achieved approximately $4 billion in capital savings, reducing total project capital expenditure to around $14 billion. Commercial frameworks have also been locked in with the Papua New Guinea government, updating the 2019 Gas Agreement to safeguard project economics during market downturns while maintaining long-term state revenues.