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

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.

- Advertisements -

Most Popular

US weekly LNG exports down to 22 shipments

US liquefied natural gas (LNG) exports decreased in the week ending April 10 compared to the week before, according...

Spot LNG shipping rates, European prices drop this week

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet decreased further this week, and European prices...

Spot LNG shipping rates continue to drop, European prices climb

Spot charter rates for the global liquefied natural gas (LNG) carrier fleet continued to decrease this week, while European...

More News Like This

TotalEnergies pushes back Papua LNG FID to 2025

French energy giant TotalEnergies and its partners have postponed a final investment decision on the planned Papua LNG export...

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...