Australia's Santos acquires additional 3.3% interest in Papua LNG

Sept 7 (Reuters) - Australia's Santos (STO.AX), opens new tab said on Monday it had acquired an additional 3.3% stake in the Papua LNG project from France's TotalEnergies (TTEF.PA), opens new tab 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 (XOM.N), opens new tab 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 (5020.T), opens new tab will increase its share from 2% to 2.4%.

Reporting by Kumar Tanishk in Bengaluru; Editing by Nivedita Bhattacharjee

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