Papua LNG Tender Revised to Ensure Economic Feasibility, Says PM Marape

Papua LNG Tender Revised to Ensure Economic Feasibility, Says PM Marape

​Papua New Guinea Prime Minister James Marape has revealed that the initial tender of US$18 billion (about K72 billion) for the construction of the Papua LNG project was deemed economically unfeasible, prompting a comprehensive review by project partners. Marape made this announcement after meeting TotalEnergies chief executive officer Patrick Pouyanné during the World Economic Forum in Davos, Switzerland.

According to Marape, the Papua LNG project has undergone significant re-engineering and re-scoping to ensure economic viability. He confirmed that the revised plans are now in advanced stages, with the project set to transition from the concept phase to final investment decisions and development by the end of the year. Pouyanné assured Marape that the project remains on track, with strong commitments from lead investors TotalEnergies and ExxonMobil.

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The Prime Minister also highlighted the alignment between TotalEnergies and ExxonMobil, citing his earlier discussions with ExxonMobil CEO Darren Woods. He emphasized that both companies are focused on ensuring Papua LNG delivers solid returns for all stakeholders, including Kumul Petroleum, which holds a 22.5% equity stake in the project.

Marape described PNG as an attractive destination for energy investments due to its proximity to Asian markets. He noted TotalEnergies’ commitment to maintaining a long-term presence in PNG, not only through the Papua LNG project but also through new exploration ventures, such as the Mailu offshore drilling project in Central Province and further exploration near the Pasca gas condensate project.

The Prime Minister encouraged energy companies, including TotalEnergies, ExxonMobil, and Santos, to expand their exploration activities within PNG. He also reiterated the country’s environmental commitments, inviting investors to collaborate with the Government in conservation efforts.

Marape disclosed that he had invited TotalEnergies and ExxonMobil to partner with PNG in carbon offsetting initiatives by dedicating forested areas to achieve carbon-neutral or carbon-negative outcomes for their operations. “These efforts will ensure our energy projects are both economically viable and environmentally responsible,” he said.
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