TotalEnergies (TTE) said Monday that Papua LNG has reached key contractual and commercial milestones, advancing the project toward a final investment decision.
The EPC tendering process is complete, with contract award recommendations awaiting co-venturer approval, while design optimization and package rebidding have cut project capital expenditure to around $14 billion, generating close to $4 billion in savings since 2024, the company said.
The gas agreement with Papua New Guinea has been finalized, while a new LNG marketing JV will commercialize 2.4 million tonnes per annum of Papua LNG's 5.6 million tonnes of total production.
Following the farm-down and PNG's exercise of its back-in right, TotalEnergies will retain a 20% stake in Papua LNG, with ExxonMobil (XOM) holding 34.1% and serving as operator, it added.
TotalEnergies and ExxonMobil shares were up more than 2% and 1% respectively in premarket activity Tuesday.