Why is TotalEnergies ceding operatorship of the Papua LNG project to ExxonMobil, and what is the strategic rationale behind this move?

TotalEnergies is ceding operatorship to ExxonMobil to unlock the $14 billion Papua LNG project by year-end, leveraging synergies with ExxonMobil’s existing PNG LNG export facility during construction and operations. According to CEO Patrick Pouyanné, this transfer 'enhances the project’s value creation and competitiveness' and marks a 'decisive step towards the final investment decision.' The move follows years of delays — partly due to disputes with the Papua New Guinea government — and is further motivated by geopolitical shifts, including the war in the Middle East, which underscores the advantage of LNG export facilities closer to Asian consumers.

What are the new ownership stakes in the Papua LNG project after TotalEnergies’ stake reduction, and how does the deal affect state participation and marketing arrangements?

After the deal, TotalEnergies reduces its stake by 9.1% to 20%; ExxonMobil’s stake rises to 34.1%; Santos Ltd. holds 21%; ENEOS Holdings Inc. holds 2.4%; and Papua New Guinea’s state-owned Kumul Petroleum Holdings Limited and Mineral Resources Development Company Ltd. jointly hold 22.5%. The agreement also establishes a marketing joint venture between TotalEnergies and the PNG state-related entities, plus an offtake heads of agreement granting TotalEnergies access to 1.5 million tons of LNG per year for its global portfolio.

Total to Cede Papua LNG Operatorship to Exxon to Unlock Project

Sep 7, 2026

TotalEnergies will transfer operatorship of the $14 billion Papua LNG project to ExxonMobil to unlock a final investment decision by year-end. The restructuring increases ExxonMobil's stake to 34.1% and targets 5.6 million tons of annual LNG production.

bloomberg

2026-09-07

Total to Cede Papua LNG Operatorship to Exxon to Unlock Project

2026-09-14

TotalEnergies Advances PNG LNG Project Decision

Total to Cede Papua LNG Operatorship to Exxon to Unlock Project

FAQ