Australia and OceaniaContracts and TendersCorporate

Oil Search, Santos extend due diligence on $16 billion merger deal

By LNG Prime Staff
Oil Search, Santos extend due diligence on $16 billion merger deal
An LNG carrier docked at the PNG LNG jetty (Image: Oil Search)

Papua New Guinea-focused Oil Search and Australia’s Santos have agreed to extend the exclusive due diligence period, as they continue to work on a recently announced merger deal that would create an LNG player worth about $16 billion.

The partners have agreed to extend the due diligence period for a further one week to September 13.

“Subject to each party completing due diligence on the other to its satisfaction, and the entry into of a merger implementation agreement, the Oil Search board intends to unanimously recommend shareholders vote in favour of the revised proposal,” the ASX-listed firm said on Monday.

Oil Search added there is no certainty that the revised proposal would result in a transaction.

To remind, Oil Search said last month it had agreed to a new merger proposal by Santos after it rejected the first offer.

As part of the revised offer, Oil Search shareholders would receive 0.6275 new Santos shares.

Following approval of the scheme, Oil Search shareholders would own about 38.5 percent of the merged group and Santos shareholders would own 61.5 percent.

Oil Search has a stake in the ExxonMobil-led PNG LNG project but also the planned Papua LNG development.

Most Popular

LNG Terminals

Jera Global Markets delivers its first LNG cargo to Senegal

Singapore-based LNG trader Jera Global Markets, a joint venture of Japan’s Jera and France’s EDF, has recently delivered its first liquefied natural gas (LNG) cargo to Senegal.
Contracts and Tenders

Shell to sell NWS LNG stake to XRG

UK-based LNG giant Shell has agreed to sell its stake in the Woodside-led North West Shelf LNG project in Western Australia to Adnoc’s investment unit XRG.
LNG Terminals

ExxonMobil boosts Rovuma LNG stake

US energy giant ExxonMobil has increased its stake in the planned Rovuma LNG project in Mozambique through a deal with Italy's Eni, while the company still targets a final investment decision by the end of this year, according to ExxonMobil CEO Darren Woods.

More News Like This

Corporate

Santos reports record quarterly production

Australian LNG player Santos reported record quarterly production of 26.3 mmboe in the third quarter, while Barossa feed gas to Darwin LNG also hit a new record peak of about 600 mmscf per day.
Contracts and Tenders

Australia’s Santos strengthens LNG portfolio with new deals

Australian LNG player Santos has signed two separate, non-binding LNG agreements that underscore the company’s growing global LNG portfolio position. Santos entered into a non-binding heads of agreement to buy LNG from the Ksi Lisims LNG project in Canada and the company agreed key commercial terms with South Korea's Posco Steel to supply the latter with LNG.
Corporate

Australia’s Santos kicks off drilling of first Beetaloo appraisal well

Australian LNG player Santos on Tuesday announced the spudding of its first appraisal well in the Beetaloo Basin, marking a "major" milestone towards unlocking a new source of long-term gas supply for Australian households, businesses, and industry.
LNG Terminals

TotalEnergies to transfer Papua LNG operatorship to ExxonMobil

French energy giant TotalEnergies said on Monday that Papua LNG has achieved "major" contractual and commercial milestones, marking "decisive" steps towards a final investment decision. These include completing the EPC tendering process and transferring Papua LNG operatorship to US energy giant ExxonMobil, operator of the PNG LNG project.