TLDRTTE stock slips as Papua LNG cuts project costs to $14B before final approval.Papua LNG completes EPC tendering after securing nearly $4B in project savings.ExxonMobil takes Papua LNG operatorship as TotalEnergies reduces its project stake.TotalEnergies keeps 20% of Papua LNG while retaining its planned LNG offtake share.New LNG marketing and offtake deals strengthen Papua LNG’s path toward financing.TotalEnergies (TTE ) shares ended Monday lower as Papua LNG advanced several commercial steps toward a final investment decision. TTE closed at $88.59, down 0.74%, before slipping 0.38% after hours to $88.25. The project also reduced planned capital spending to about $14 billion after major design and bidding changes.TotalEnergies SE, TTEPapua LNG Cuts Costs and Completes EPC TenderingPapua LNG has completed its engineering, procurement, and construction tendering process after a broad review of project costs. The project team has prepared contract award recommendations, which now require approval from the participating joint venture partners. Since 2024, design changes and renewed bidding have generated close to $4 billion in estimated savings.TotalEnergies said the savings came from project optimization and a wider group of Asian engineering and construction bidders. The partners also developed an alternative condensate plan that can use existing links with the nearby PNG LNG project. These measures lowered estimated Papua LNG capital expenditure to around $14 billion from earlier project assumptions.The updated cost structure also supported changes to the existing gas agreement with Papua New Guinea’s government. The revised agreement reflects the lower project budget while protecting long-term fiscal returns for the state. It also aims to maintain stronger project economics during periods of weaker LNG market conditions.ExxonMobil Takes Operatorship as TotalEnergies Reduces StakeThe Papua LNG partners agreed to transfer project operatorship from TotalEnergies to ExxonMobil to increase operating synergies. Both companies will manage the transition while maintaining ongoing project work and existing commitments in Papua New Guinea. The change will connect Papua LNG more closely with ExxonMobil’s existing PNG LNG operations during construction and production.TotalEnergies will also sell a 9.1% project interest to existing Papua LNG partners after the state back-in process. The company will retain a 20% stake after completing the transaction and related ownership adjustments. However, TotalEnergies will keep its existing LNG offtake share despite reducing its direct equity position.After the changes, ExxonMobil will hold 34.1% and operate the project, while Santos will own 21.0%. ENEOS Xplora will hold 2.4%, while Kumul Petroleum and MRDC will jointly control 22.5%. The final ownership structure also leaves TotalEnergies with its planned 20% interest in Papua LNG.LNG Marketing Deals Support Financing and Asian SupplyTotalEnergies and Papua New Guinea state-linked entities also formed a joint venture to market Papua LNG production. The venture will commercialize 2.4 million tonnes annually from the project’s expected 5.6 million tonnes annual output. This structure aims to strengthen project financing by creating a defined marketing channel for a large production share.TotalEnergies also signed an offtake heads of agreement with the new LNG marketing joint venture. The arrangement gives TotalEnergies access to 1.5 million tonnes of LNG annually for its global portfolio. That volume supports the company’s supply position across Asian markets where long-term gas demand remains significant.Papua LNG still requires a final investment decision before full project development can move forward. However, the completed tendering, revised gas agreement, ownership changes, and marketing deals remove several major commercial hurdles. For TTE stock, the latest project progress contrasts with Monday’s modest decline in regular and after-hours trading. The post TotalEnergies SE (TTE) Stock: Drops as Papua LNG Milestones Bring $14B Project Closer to Final Investment Decision appeared first on Blockonomi.