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Australia's Santos Buys Extra 3.3% Stake in Papua LNG

Sept 7 (Reuters) - Australia's Santos said on Monday it had acquired ​an additional 3.3% stake in the Papua ‌LNG project from France's TotalEnergies for $189 million, increasing its total interest in the venture to 21%.

The ​acquisition is expected to boost Santos' equity ​liquefied natural gas production from Papua LNG by ⁠about 19%, bringing it to around 1.2 ​million tonnes per annum (Mtpa) on a post-State ​back-in basis.

Separately, TotalEnergies transferred operatorship of the Papua LNG project to ExxonMobil's local arm while reducing its equity ​stake in favour of other joint ​venture partners.

Santos stated that ExxonMobil's combined operatorship of Papua ‌LNG ⁠and the adjacent PNG LNG project is anticipated to enhance operational synergies and bolster project execution.

Completion of Santos' acquisition remains subject to ​the Papua ​LNG project ⁠reaching a final investment decision, which is scheduled for the fourth ​quarter of 2026.

Following the deals, TotalEnergies' ​participating ⁠interest will fall from 29.1% to 20%, ExxonMobil will see its stake rise from 28.7% ⁠to ​34.1%, and Japan's ENEOS Xplora ​will increase its share from 2% to 2.4%.

Reporting by ​Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee

Source: Reuters


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