Santos has agreed to buy an additional 3.3% participating interest in Petroleum Retention Licence 15 and Papua LNG from TotalEnergies for approximately $189 million. The transaction would raise Santos’ holding to 21% after Papua New Guinea exercises its back-in rights and increase its share of LNG production by about 19%, to approximately 1.2 million tonnes per year. The purchase is economically effective from January 1, 2026, but remains subject to regulatory approvals and Papua LNG reaching a final investment decision, which Santos expects in the fourth quarter of 2026. The transaction forms part of a broader restructuring under which ExxonMobil PNG Antelope Limited will become operator, TotalEnergies will sell a 9.1% post-state-back-in interest to existing partners while retaining 20%, and project partners have reduced estimated capital spending by close to $4 billion to around $14 billion through rebidding, design changes and greater integration with existing PNG LNG infrastructure. ExxonMobil, which operates the neighboring $19 billion PNG LNG project that began production in 2014, is expected to create construction and operating synergies by managing both developments. Papua LNG is designed to develop the Elk-Antelope gas fields and produce around 5.6 million tonnes of LNG annually, primarily for Asian markets. TotalEnergies and Papua New Guinea state entities have also formed a marketing joint venture for 2.4 million tonnes per year, while TotalEnergies has signed a heads of agreement to purchase 1.5 million tonnes per year for its global LNG portfolio.