Prime Minister James Marape concluded a series of high- level meetings at the World Economic Forum with a productive discussion with Patrick Pouyanné, CEO of TotalEnergies, focusing on the Papua LNG project and its future progress.
Prime Minister Marape confirmed substantial progress on the re-engineering and re-scoping of Papua LNG, which is now moving toward the next phase of development.
“Mr. Pouyanné provided updates on Papua LNG’s progress, assuring us that the project remains on track despite earlier delays due to cost concerns. The initial tender of $18 billion for construction was deemed economically unfeasible, so the project partners went back to the drawing board. Now, the re-engineering work is in an advanced stage, and they are on schedule to move from the concept stage to final investment decisions and project development by the end of this year,” Prime Minister Marape said.
The Prime Minister highlighted the strong commitment from both TotalEnergies and ExxonMobil, the lead investors in Papua LNG.
“This meeting reaffirmed the earlier discussion I had with Mr. Darren Woods, CEO of ExxonMobil. Both companies are aligned in their commitment to ensuring Papua LNG progresses within a feasible economic framework, providing a solid return on investment for all stakeholders, including Kumul Petroleum, which holds a 22.5% stake in the project,” he noted.
Prime Minister Marape also emphasised that Papua New Guinea remains a robust and attractive destination for energy producers, given its proximity to key Asian markets.
“Mr. Pouyanné confirmed TotalEnergies’ long-term presence in PNG. Beyond Papua LNG, they are also pursuing new exploration opportunities, including the Mailu offshore drilling project in the eastern part of Central Province, along with additional exploration in fields near the Pasca gas condensate project,” he added.
The Prime Minister encouraged all current energy investors, including TotalEnergies, ExxonMobil, and Santos, to expand their exploration activities in Papua New Guinea.
“It is also exciting to see TotalEnergies investing substantial resources into new exploration. Offshore drilling in Central Province could yield promising results, and their commitment to exploration signals long-term confidence in PNG’s energy potential,” he said.
Prime Minister Marape also discussed Papua New Guinea’s environmental commitments and invited energy investors to partner with the government in conservation efforts.
“I have invited TotalEnergies and ExxonMobil to collaborate with the government in dedicating specific parcels of forests for carbon offsetting, ensuring their operations in PNG achieve carbon-neutral or even carbon-negative outcomes. This initiative aligns with our broader efforts to conserve forests and contribute to global climate solutions,” he said.
The timeline for Papua LNG remains on track, with a final investment decision expected later this year. Both TotalEnergies and ExxonMobil reiterated their commitment to progressing not only Papua LNG but also associated projects such as P’nyang LNG.
“The consistent commitment from these two global energy leaders, TotalEnergies and ExxonMobil, is encouraging. Their focus on advancing Papua LNG and exploring new opportunities positions Papua New Guinea as a key player in the energy sector for decades to come,” Prime Minister Marape concluded.
