Energy Majors Restructure Papua LNG Project as ExxonMobil Takes Operatorship
TotalEnergies will reduce its Papua LNG stake and transfer project operatorship to ExxonMobil's local subsidiary, altering the project's governance structure.
BUSINESSES RESHAPING OUR WORLD
Global N Press
9/8/20262 min read
PARIS, September 7, 2026 — TotalEnergies has agreed to reduce its stake in Papua New Guinea's Papua LNG project and transfer operatorship to ExxonMobil's local subsidiary, changing the project's ownership and management structure.
Under the revised arrangement, ExxonMobil, Australia's Santos and Japan's ENEOS Xplora will increase their interests in the project. The changes will redistribute ownership and operational responsibilities among the project's international partners.
ExxonMobil to Assume Operatorship
Papua LNG is expected to have annual production capacity of about 5.6 million metric tons of liquefied natural gas. The project is located in Papua New Guinea, where ExxonMobil already operates the neighboring PNG LNG project.
ExxonMobil's assumption of operatorship will give the company greater responsibility for the project's development and operations. Its existing role in PNG LNG also provides the company with established operational experience and infrastructure relationships in Papua New Guinea.
TotalEnergies, meanwhile, will reduce its financial exposure to Papua LNG while remaining a participant in the project.
Partners Increase Their Stakes
The revised structure will increase the participation of ExxonMobil and other existing partners, including Santos and ENEOS Xplora. The changes come as the project advances through its development process and its partners adjust their respective ownership positions and responsibilities.
Large LNG projects generally require substantial capital investment, complex infrastructure and lengthy development periods. Changes in ownership and operatorship can influence how investment, project management and development responsibilities are distributed among partners.
For Papua New Guinea, Papua LNG remains a significant planned energy investment with potential implications for future LNG exports, government revenue and economic activity.
Implications for LNG Supply
The restructuring comes as LNG remains an important component of global energy markets. European countries continue to diversify their sources of natural gas, while demand in Asian markets remains a key factor supporting competition for LNG supplies.
New LNG developments are therefore being closely monitored by governments, utilities and energy companies seeking to secure future supplies and diversify their sources of gas.
With expected annual production of about 5.6 million metric tons, Papua LNG could add to regional LNG supply once operational. Its eventual impact on global markets will depend on the project's development schedule, construction progress and broader changes in gas demand and supply.
Corporate Portfolio Adjustments
The change in Papua LNG's ownership and operatorship highlights how major energy companies continue to adjust their positions in large, capital-intensive projects.
For ExxonMobil, taking operatorship strengthens its operational role in Papua New Guinea and adds another major LNG development to its existing PNG LNG operations. For TotalEnergies, reducing its stake lowers its exposure to the project while allowing it to retain an interest in its future development.
The restructuring illustrates how decisions over ownership and operatorship can influence the development of major energy projects and, over time, the availability of new LNG supply to international markets.
