TotalEnergies Slashes Papua LNG Costs Ahead of Final Investment Decision

The revised financial strategy follows a rigorous EPC tendering process that trimmed US$4 billion from original cost estimates. TotalEnergies will now move to a 20% stake in the venture, ceding the operator role to ExxonMobil, which holds a 34.1% interest. This realignment includes a sale of a 9.1% interest to existing project partners, ensuring the project remains economically robust even during low-cycle market conditions.

Key to the project's progress is a newly finalized Gas Agreement with the Papua New Guinea government and the creation of a marketing joint venture with Kumul Petroleum Holdings. This entity will manage the commercialization of 2.4 million tonnes per annum (Mtpa) of the total 5.6 Mtpa production. Patrick Pouyanné, Chairman and CEO of TotalEnergies, credited the government’s support for enabling these milestones, which solidify the company’s access to 1.5 Mtpa of LNG for its global portfolio. With the Elk and Antelope fields at the center of the development, the project remains on a clear path toward a formal Final Investment Decision.