Australia’s Santos said on Monday it had agreed to acquire an additional 3.3% interest in the Papua LNG project in Papua New Guinea from France’s TotalEnergies for $189 million.
The deal will increase Santos’ participating interest in the gas project to 21%, strengthening its position in the planned liquefied natural gas development.
Santos said the acquisition is expected to lift its equity LNG production from Papua LNG by about 19% to around 1.2 million tonnes per year on a post-State back-in basis.
Separately, TotalEnergies has transferred operatorship of Papua LNG to ExxonMobil’s local subsidiary as part of a broader restructuring of ownership in the project.
Santos said combining ExxonMobil’s operatorship of Papua LNG with its existing role at the nearby PNG LNG project could create operational synergies and improve project execution.
Following the transactions, TotalEnergies’ participating interest will fall to 20% from 29.1%, while ExxonMobil’s stake will increase to 34.1% from 28.7%.
Japan’s ENEOS Xplora will also raise its interest to 2.4% from 2%, following the changes among the project’s joint venture partners.
The Papua LNG project is being developed in Papua New Guinea to produce LNG from the country’s gas resources, with the partners targeting a final investment decision in the fourth quarter of 2026.
Santos’ acquisition remains subject to the project reaching that investment decision, meaning completion of the transaction is conditional on further progress toward development.
The deal highlights Santos’ efforts to expand its LNG exposure while ExxonMobil takes a larger operational role in Papua New Guinea’s growing gas industry.