Santos Boosts Papua LNG Stake as ExxonMobil Takes Operatorship

Santos, an Australian energy company, is increasing its stake in the Papua LNG development as ExxonMobil takes over control of the project from TotalEnergies. Santos is acquiring an additional 3.3% interest in the project for around $189 million, raising its stake to 21% after Papua New Guinea exercises its back-in rights. This acquisition will boost Santos' share of LNG production from Papua LNG by approximately 19%, amounting to about 1.2 million tonnes per year.

The deal is dependent on regulatory approvals and the project reaching a final investment decision, expected in the fourth quarter of 2026. The acquisition will become economically effective from January 1, 2026. TotalEnergies will transfer operatorship to ExxonMobil PNG Antelopes Limited and sell a 9.1% interest to its existing partners.

Following the changes, TotalEnergies is expected to hold a 20% stake, while ExxonMobil will become the operator with a 34.1% stake. The project, designed to develop the Elk-Antelope gas fields, is expected to produce around 5.6 million tonnes of LNG annually, primarily targeting Asian markets. ExxonMobil's existing LNG infrastructure in Papua New Guinea could help make greater use of the project.