Santos raises Papua LNG Project stake for US$189M
- Santos will pay US$189 million to raise its stake in the Papua LNG Project to 21%.
- Following the announcement, the Santos share price was up 1.71% at $8.35.
- The transaction aligns the company's holdings across two regional natural gas ventures ahead of a planned final investment decision later this year.
Australian energy producer Santos (ASX:STO) has agreed to pay US$189 million to increase its stake in the Papua LNG Project to 21% ahead of a final investment decision later this year.
The move follows a restructuring of the US$14 billion venture that saw French energy group TotalEnergies trim its holding while the handover of operations transferred to ExxonMobil (NYSE:XOM).
“Papua LNG is a world-class project, and this is the right time to increase our position,” said Santos CEO Kevin Gallagher.
TotalEnergies stated that design changes and contractor rebidding reduced the estimated construction cost by almost US$4 billion after cost overruns paused the project in 2024.
Following the announcement, the Santos share price was up 1.71% at $8.35.
The agreement raises the annual production share belonging to Santos from the Papua New Guinea development to 1.2 million tonnes of liquefied natural gas.
ExxonMobil currently operates the adjacent PNG LNG facility, where Santos also holds an equity stake that will allow shared infrastructure across both operating sites.
