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19 min ago 2 min read
Multinational TotalEnergies is selling a 9.1% stake in Papua LNG to project partners – transferring operations of the LNG plant to ExxonMobil – while retaining a 20% stake.
An LNG marketing joint venture between TotalEnergies and state-related entities represented by Kumul Petroleum Holdings will be established, to commercialise 2.4 million tonnes per annum (mtpa), out of a total production of 5.6 mtpa, to support project financing.
The restructuring is part of a broader series of major contractual and commercial milestones as the project nears a final investment decision (FID), which is targeted for November. TotalEnergies said it will maintain its LNG offtake share of the project (1.5 mtpa).
The Gas Agreement signed with the government in 2019 has been amended to ensure ‘robust project economics’, including in low cycle, while preserving the state’s long-term fiscal interests.
Patrick Pouyanné, Chairman and CEO, said the transfer of operatorship enhances the project’s value and competitiveness.
“Papua LNG will enable the company to secure significant LNG volumes, strategically located to support energy supply diversification across fast-growing Asian markets,” he said.
The stakeholders in Papua LNG are now ExxonMobil (34.1%, operator), Kumul Petroleum Holdings and MRDC (22.5%), Santos (21%), TotalEnergies (20%), Eneos Xplora (2.4%).
Papua LNG is a natural gas production and liquefaction project located in Papua New Guinea that will monetize the gas resources of the Elk and Antelope fields in the Gulf Province.
Its development includes gas processing facilities, a pipeline connecting the fields to the liquefaction site and LNG infrastructure located near Port Moresby.
The project has faced repeated delays over the last seven years, compounded by rising construction costs, contractor and tender renegotiations, financing and climate pressures, global market headwinds, political friction and the pandemic.
Santos announced FID with the Agogo production facility tie-in project in Papua New Guinea, following approval by the PNG LNG joint venture, .
