Oil Search, Santos enter definitive merger deal

Papua New Guinea-focused Oil Search and Australia’s Santos have entered into a definitive merger deal that would create an LNG player worth about A$21 billion ($15.5 billion).

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

Under the revised offer, Oil Search shareholders would receive 0.6275 new Santos shares.

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

This deal values Oil Search at about A$8 billion ($6 billion). The firm has a stake in the ExxonMobil-led PNG LNG project but also the planned Papua LNG development.

Santos said on Monday it expects the merger to unlock pre-tax synergies of $90-115 million per annum.

The merger is subject to a limited number of customary conditions including Oil Search shareholder approval, regulatory approvals and Papua New Guinea court approval.

Moreover, the combined Santos and Oil Search will be led by Santos chief executive Kevin Gallagher.

“Santos and Oil Search will be stronger together and will have increased scale and capacity to drive a combined disciplined, low-cost operating model and unrivaled growth opportunities over the next decade,” Gallagher said.

“The merger will create a company with a balance sheet and strong cashflows necessary to successfully navigate the transition to a lower carbon future with the combination of Santos’ leading CCS capability combining with Oil Search’s ESG programs in PNG and Alaska to provide a strong foundation,” he said.

- Advertisements -

Most Popular

VTTI, IKAV to take majority stake in Italy’s Adriatic LNG terminal

Rotterdam-based storage terminal owner VTTI, co-owned by Vitol, IFM, and Adnoc, joined forces with German asset manager IKAV to...

Seapeak says working on charter and other opportunities for six LNG carriers

Stonepeak's Seapeak is pursuing various opportunities relating to six of its liquefied natural gas (LNG) carriers which are scheduled...

Deutsche ReGas: Mukran FSRU welcomes first LNG tanker

LNG terminal operator Deutsche ReGas has received the first LNG tanker at its FSRU-based LNG import facility in Germany’s...

More News Like This

UGL clinches Darwin LNG job from Santos

Australian LNG player Santos has awarded a contract to CIMIC's unit UGL for the Darwin LNG life extension project...

Santos secures funds for Moomba CCS project

Australian LNG player Santos has secured finance for the company’s share of the $220 million Moomba carbon capture and...

Santos reports lower 2023 profit

Australian LNG player Santos reported a drop in its underlying net profit in 2023 due to lower prices. The independent...

Australia’s Santos boosts reserves

Australian LNG player Santos boosted its proved plus probable (2P) reserves in 2023. Santos, which recently ended its merger talks...