TotalEnergies: Papua LNG cost falls toward $14bn as an operatorship transfer is proposed

TotalEnergies announced a revised framework for Papua LNG on 7 September 2026.

Main terms

The estimated project cost has fallen by almost $4bn since 2024, to approximately $14bn, following design changes and competitive tendering. Engineering and construction recommendations are ready for partner approval.

The proposed structure transfers operatorship to ExxonMobil. TotalEnergies would reduce its interest by 9.1 percentage points after the state's participation, retaining 20%.

After completion, the stated ownership would be TotalEnergies 20%, ExxonMobil 34.1%, Santos 21%, ENEOS 2.4% and the state 22.5%.

Commercial progress and remaining steps

The package includes a new gas agreement and a marketing joint venture covering 2.4 million tonnes annually, within the project's planned 5.6-million-tonne capacity. TotalEnergies also signed heads of agreement to purchase 1.5 million tonnes annually.

Lower capital requirements and revised responsibilities could improve project execution and financing prospects. However, a final investment decision has not yet been taken. The announced cost, ownership and commercial arrangements should be assessed as a development framework with approvals and implementation still ahead.

Source: Company announcement, 7 September 2026.