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.