Australian LNG player Santos said it has completed the merger deal with PNG-focused Oil Search worth about A$22 billion ($15.7 billion).
Santos said on Friday that the merger became effective following the approvals by Oil Search shareholders and the National Court of Papua New Guinea.
Under the deal, Oil Search shareholders would receive 0.6275 new Santos shares for each Oil Search share held on the record date of December 14.
Oil Search shareholders would own about 38.5 percent of the merged group and Santos shareholders would own 61.5 percent.
“Santos and Oil Search are stronger together and will have increased scale and capacity to drive a disciplined, low-cost operating model and unrivaled growth opportunities over the next decade,” Santos managing director and chief executive, Kevin Gallagher, said.
Following the implementation of the merger, three non-executive directors from Oil Search would join the Santos board. Santos’ head office would remain in Adelaide.
In September, Oil Search and Santos have entered into a definitive merger deal.
Oil Search has a stake in the ExxonMobil-led PNG LNG project but also the planned Papua LNG development. Combined, Santos and Oil Search have a 42.5 percent stake in PNG LNG.