ExxonMobil Increases Stake in Papua LNG Project to 34.1% with $14B Budget
On September 7, 2026, ExxonMobil Holdings Corporation (XOM) announced it would increase its stake in the Papua LNG project from 28.7% to 34.1%, assuming operatorship of the development. The project is targeting a final investment decision (FID) by Q4 2026 and aims for annual production of 5.6 million tonnes of liquefied natural gas. TotalEnergies SE reported that redesigns and rebidding have reduced estimated costs from around $18 billion to approximately $14 billion since 2024, a reduction of nearly $4 billion. The project's viability hinges on whether the lower budget can still deliver attractive returns amid an uncertain LNG market. Operatorship could improve coordination with ExxonMobil’s existing PNG LNG operations and leverage local infrastructure for efficiency gains. TotalEnergies has also established marketing agreements to secure 2.4 million tonnes annually, including a heads of agreement to purchase 1.5 million tonnes per year. However, risks remain as operatorship increases both responsibility and exposure for ExxonMobil. Tender approvals are still pending, and uncertainties around inflation, contractor performance, pricing terms, and delivery logistics could affect the project’s economics.
Topics: ExxonMobil LNG Papua LNG Santos Limited TotalEnergies