TotalEnergies is preparing for two significant, parallel activities in Papua New Guinea: a critical development forum for the Papua LNG project and the drilling of the Mailu-1 exploration well.

Papua LNG Development Forum

A crucial development forum for the Papua LNG project is scheduled for next month in Kerema, the capital of Gulf Province. The forum aims to bring together the project partners, the PNG state, and landowner representatives to agree on a project benefit sharing package. This agreement is a mandatory prerequisite for the project to proceed to a final investment decision (FID). The negotiation is complex due to the significant sums of money involved and the large number of stakeholders. The state holds a back-in right to a 22.5% interest in petroleum projects, from which landowners are entitled to benefit, similar to the structure of the existing PNG LNG project.

The complexity is heightened by the number of clans involved. Approximately 150 clan groups are located in the immediate area of the Elk and Antelope gas fields, with a similar number along the planned pipeline routes. If four representatives per clan attend, the forum may need to accommodate around 1,200 landowner representatives. The government has committed to ensuring the forum is inclusive and well-coordinated, acknowledging the central role of customary landowners. The area is underdeveloped and remote from the capital, Port Moresby.

Papua LNG Project Status and Details

Concurrently, tendering for the project's engineering, procurement, and construction contracts is progressing toward awards. The Papua LNG project is owned by TotalEnergies (37.55%), ExxonMobil (37.04%), Santos (22.83%), and JX Nippon (2.58%), with the PNG state retaining its back-in right. The project is based on an estimated 6.5 trillion cubic feet of gas and 57 million barrels of condensate, with a planned LNG production capacity of 5.6 million tonnes per annum.

Mailu-1 Exploration Well

In a separate but simultaneous operation, TotalEnergies is preparing to drill the Mailu-1 deepwater exploration well in the Gulf of Papua in the first quarter of 2026. This will be Papua New Guinea's first deepwater well. TotalEnergies has described Mailu as a "giant liquids prospect with large upside." The company is partnered by Petronas, and Noble Corporation has been contracted to provide the drillship Noble Viking. The contract covers one firm well, valued at an estimated $34.2 million including specific fees, plus one optional well.