Monday, 7 September 2026

ExxonMobil is set to become operator of Papua LNG, the USD 14 billion gas export scheme in Papua New Guinea, with the partners pushing toward a final investment decision, TotalEnergies said in an announcement reported by World Oil.

Design changes and the rebidding of engineering, procurement and construction contracts cut nearly USD 4 billion from the budget, leaving estimated capex at approximately USD 14 billion, according to World Oil.

TotalEnergies is offloading a 9.1% interest to its partners. That leaves the company at 20% once back-in rights are settled, while its share of LNG offtake stays unchanged, World Oil reported.

Ownership after those transfers and the exercise of back-in rights by the Papua New Guinea government puts ExxonMobil at 34.1% in the operator seat, World Oil reported. Kumul Petroleum Holdings Limited and MRDC together take 22.5%. Santos is at 21%, and ENEOS Xplora holds 2.4%.

Gas for the plant comes from the Elk and Antelope fields in the Gulf Province of Papua New Guinea, with nameplate output set at 5.6 MMtpa of LNG, according to World Oil.

A marketing joint venture between TotalEnergies and Papua New Guinea state entities will handle 2.4 MMtpa of the volumes, which World Oil said supports project financing.

Brent crude briefly traded above $98 a barrel before easing slightly, with Middle East shipping risks and a rebound in Chinese crude purchases behind the move, according to World Oil.

The benchmark is up roughly 60% so far this year, World Oil reported.

Iran said a deal with Oman to manage shipping through the Strait of Hormuz is imminent, according to the same report. The announcement followed strikes on Iranian vessels over the weekend, leaving open how the response would unfold.

Positioning has shifted with the tension. Hedge funds turned the most bullish on Brent since May, adding to net-bullish positions in the week ended Sept. 1, World Oil reported.

Goldman Sachs analyst Daan Struyven set out a higher path if the maritime conflict widens. "In an upside price scenario, where shipping attacks broaden and intensify, we see Brent potentially reaching $120," Struyven said.