Papua LNG: Clarification by TotalEnergies regarding compliance with the Equator Principles

Paris, January 14, 2026 – Further to a recent request made by six non-governmental organizations to Equator Principles Limited regarding the application by the Papua LNG project of the Equator Principles, TotalEnergies reaffirms that the Papua LNG project is committed to respecting the Papua New Guinean national legislation, the Equator Principles as well as the Performance Standards (PS) of the International Financial Corporation (IFC).

TotalEnergies EP PNG, the operator of the upstream Project and its partners are working closely with the authorities, the communities, and the local economic network to ensure the Papua LNG Project’s exemplarity on the societal and environmental front .

TotalEnergies is surprised by these claims given the current development stage of the Papua LNG project, which is still progressing towards a Final Investment Decision (FID). Whilst an Independent Environmental & Societal Consultant (IESC) is currently reviewing the environmental and social aspects of the Project on behalf of the future pool of Project lenders, the Company nonetheless wishes to clarify the following points related to the claims made:

Stakeholder engagement - Under its Environment and Social Management System, TotalEnergies EP PNG has adopted a grassroots consultative approach to share and discuss all information about the project, training and employment opportunities, local business development, and social investment activities with community groups, including vulnerable groups.
Furthermore, a network of Village Liaison Officers (VLO) and Community Liaison Officers (CLO) assists technical experts to explain the various components of the Project to local communities, whilst also listening and gathering enquiries and expectations expressed by those communities.
In accordance with local communities' expectations and with recommendations from the Independent Advisory Panel1, Lida Kibungs (assembly of clan representatives) and meetings with the regional government via the Gulf Province Working Group2, are organized twice a year.

Free, Prior and Informed Consent (FPIC) - An FPIC process has been designed for the Papua LNG Project in alignment with international standards. Community engagement is implemented in a culturally appropriate, and inclusive manner with informed consultations and negotiation with affected clans. The FPIC process is grounded in a five-phase model, whose implementation is currently ongoing. TotalEnergies EP PNG ensures agreements cover all material impacts (land and waterways) and embed safeguards for compensation.
TotalEnergies EP PNG ensures communities are assisted by third-party legal advisors, which attend meetings between the communities and the Project and ensure that community members fully understand their rights and obligations. These advisors also meet the communities without Papua LNG Project representatives to discuss the clans’ interests.

Climate - A Climate Change Risk Assessment (CCRA) performed by an external, internationally recognized consultant forms part of the studies for the Project as per Equator Principles Guidance note on climate change risk assessment.

Human rights - A Human Rights Impact Assessment (HRIA) has been conducted in 2017, and a non-technical summary was published in 2019 providing a focused analysis of potential human rights impacts related to gender, security and conflict. Furthermore, a second HRIA has been performed in 2025 by a recognized external consultant, to update and complete the assessment of overall human rights impacts associated with the Papua LNG project and to develop an updated Human Rights action plan.

Biodiversity - The Papua LNG Project aims to deliver biodiversity net gain and has set up a long-term strategy by developing a Biodiversity and Ecosystems (BES) Policy to preserve the environment and deploy a positive action plan. The 2019 Environmental Impact Statement (EIS) and its 2024 EIS Addendum were used to assess the Project’s biodiversity impacts and include appropriate mitigation measures. Additionally, a list of sensitive species known or considered likely to occur in the Project area is regularly updated by dedicated biodiversity specialists, using the IUCN Red List (which is recognized and adopted as the global standard for assessing species conservation status).This list provides an adequate basis for impact management, ensuring compliance with IFC PS6 on biodiversity.

Cumulative impacts - The EIS addresses the cumulative impacts with other industrial projects such as the Mayur mining project and the Ihu Special Economic zone. Other oil & gas projects mentioned in the NGO request are still in a design phase, with impact assessment still to be performed by their respective operators.

Resettlement - The Project has been carefully designed to avoid any physical displacement of permanently settled population. A small group of families who have recently moved into the vicinity of the Project will be subject to specific resettlement measures, in close contact with the owner of the land where they settled.

Gender - The Project encourages women employment, ensures their representation in community meetings and fosters the dialogue with women in local communities.
TotalEnergies, ExxonMobil and Santos, co-venturers of the Project, are also committed corporate subscribers to the Bel Isi PNG initiative, which addresses Family and Sexual Violence (FSV) and Sorcery Accusation Related Violence (SARV) in Papua New Guinea.

Transparency - The Environment, Social and Health Impact Assessment (ESHIA) of the Project is currently being conducted for submission to Project lenders.

Grievance management - The Project has also developed a Community Concerns and Grievance Mechanism (CCGM) aligned with the effectiveness criteria of the UN Guiding Principle on Business and Human Rights, to receive, assess, and resolve concerns and grievances from local stakeholders (including individuals, households, groups, community, civil society organizations, NGOs). Several channels have been established to submit grievances and raise awareness among communities, including through continuous contacts maintained by CLOs, awareness-raising meetings held in the Project area of influence, the dissemination of CCGM brochure in Tok Pisin and English, a dedicated toll-free line, emails, postal mail, or drop-boxes placed in every village.

Business integrity - TotalEnergies EP PNG applies TotalEnergies’ Code of conduct, including the zero-tolerance principle for any form of corruption, and implements measures to control compliance with the Code of Conduct. TotalEnergies EP PNG regularly organizes related training courses for its employees and is subject to Company internal audits.

The Papua New Guinea government, TotalEnergies EP PNG and its partners believe that the Papua LNG project is in the best interest of Papua New Guinea and its people, particularly those located in the region the Project will operate, and would like to reiterate their commitment to supporting the development of the project, led by Papua LNG, while ensuring it generates strong in-country value by supporting the socio-economic development and the respect of local communities’ rights.

***

1The aim of the Independent Advisory Panel is to formulate recommendations to develop Papua LNG with the best standards in areas such as biodiversity, human rights, social development and sustainability. The IAP panelists have been selected for their high level of expertise in the domains of climate, biodiversity, human development and community work.
2A working group between representatives from the Gulf Province government and from TotalEnergies EP PNG.