TotalEnergies Reduces Papua LNG Stake, Hands Operatorship to ExxonMobil

TotalEnergies is reducing its stake in Papua LNG and handing over operatorship to ExxonMobil as it pushes for a final investment decision by year's end. The French energy major will sell a 9.1% stake to its partners, retaining a 20% interest in the project. Santos has acquired an additional 3.3% stake for $189 million, increasing its share to 21%. This deal is contingent on Papua LNG reaching a final investment decision, expected in Q4 2026.

TotalEnergies claims it has cleared contractual and commercial hurdles for FID, while ExxonMobil sees this alignment as strengthening project execution efficiency. Since 2024, the company has achieved nearly $4 billion in cost savings through contract rebidding and project design optimization. Estimated capital expenditure has been cut to about $14 billion.

The partners have finalized an amended gas agreement with Papua New Guinea's government and established a joint venture for LNG marketing with Kumul Petroleum. This will enable the sale of 2.4 Mtpa out of the project's 5.6 Mtpa output. TotalEnergies' offtake share remains unchanged, but this stake sale frees up capital for other projects.