ExxonMobil Poised to Acquire Operatorship of Papua LNG Project
ExxonMobil is anticipated to take over as operator of the Papua LNG project in Gulf, currently led by TotalEnergies. This transition may involve ExxonMobil increasing its stake, potentially making it the largest shareholder in the venture.
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ExxonMobil is expected to take over the Papua LNG project, with discussions about operatorship transfer from TotalEnergies advancing. Current ownership is split as follows: TotalEnergies 37.55%, ExxonMobil 37.04%, Santos 22.83%, and Eneos Explora 2.58%, while the Government holds a 22.5% back-in right.
Initial estimates for the project stood at US$12 billion, but recent tenders indicated costs as high as US$18 billion, necessitating a reassessment before final investment decision (FID). The project aims to stimulate construction in PNG, creating jobs and enhancing government revenue. Delays have been attributed to various commercial, political, and engineering challenges.
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