2227 GMT - Santos's purchase of an additional 3.3% stake in Papua LNG from TotalEnergies looks attractive to its bull at Citi. This interest comes at a 50% discount to the bank's valuation. Santos will have a 21% stake in Papua LNG once Papua New Guinea buys into the project. Analyst Tom Wallington notes the transaction hinges on regulatory approvals and a final investment decision. Citi expects FID to happen later this year. "While the increased share increases Santos's Papua equity contribution by US$300 million, we view this favorably," Citi says. That reflects the project's strong internal rate of return of 15%, assuming oil prices average $65 over the long term. Papua LNG is also a good strategic fit and there's potential to make further operating savings under a simplified ownership and operatorship structure, Citi says.