TotalEnergies to lower stake in Papua LNG, hand operatorship to Exxon

The partners have also finalised an amended gas agreement with Papua New Guinea's government and established an LNG marketing joint venture with Kumul Petroleum to sell 2.4 Mtpa of the project's 5.6 Mtpa output.

Papua LNG is part of TotalEnergies' strategy to expand lower-cost LNG supply. The project, which is expected to produce 5.6 Mtpa from the Elk and Antelope fields in Papua New Guinea's Gulf Province, mainly for Asian buyers, has been in the works for more than a decade but has faced repeated delays from fiscal disputes, the pandemic and negotiations among partners.

TotalEnergies' offtake share remains unchanged, giving it access to 1.5 Mtpa for its LNG portfolio. However, the stake sale will free up capital for other projects.

TotalEnergies has one of the industry's largest LNG investment commitments among projects under construction, said Marc Howson, head of Asia Pacific at Welligence Energy Analytics, including stakes in developments in the Middle East, the U.S. Gulf Coast, and West and East Africa.