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ADNOC Leads Consortium That Offers US$ 18.7 Billion for Australian Santos. Offer Boosts Petroleum Company Stocks and Strengthens Abu Dhabi’s Global Strategy in the Gas and LNG Sector.
In a strategic move that could reshape the international landscape of the oil and gas sector, state-owned ADNOC (Abu Dhabi National Oil Company) made an indicative bid of US$ 18.7 billion for the Australian oil company Santos. If completed, the transaction will solidify ADNOC’s presence in the liquefied natural gas (LNG) market and reinforce its positioning as a global player in the sector.
Offer Moves the Market and Boosts Santos Stocks
The proposal led by ADNOC was presented through the XRG Consortium, which also includes Abu Dhabi Development Holding and the American fund Carlyle.
The non-binding offer was set at A$ 8.89 (US$ 5.76) per Santos share, representing a 28% premium over the closing price of the shares last Friday.
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The announcement had an immediate impact on the market: Santos’ shares rose by up to 15% that morning, reaching a value of A$ 8.020.
According to a statement from Santos, the company’s board has already indicated that it intends to recommend the proposal to shareholders, provided no other more advantageous offers are presented.
This movement reinforces the rumors that have circulated since July of last year about ADNOC’s interest in acquiring the Australian company.
Santos Is a Key Piece for ADNOC’s Global Expansion
Santos has strategic assets in gas, oil, LNG, and carbon capture technologies, with operations in Australia, Papua New Guinea, and the United States.
These assets are seen as fundamental to ADNOC’s plans to build a diversified global portfolio, aligned with the growing demand for low-carbon energy.
In an official statement, the XRG Consortium declared that the transaction “aligns with its strategy and ambition to build a leading integrated global business in gas and LNG.”
The proposal also includes a commitment to maintain Santos’ headquarters in Adelaide, preserve the brand, and strengthen its operations both in the Australian market and in the international hubs where the company operates.
Commitments to Growth and Local Communities
The XRG Consortium also stated that it intends to work closely with Santos’ current management team, focusing on accelerating the company’s growth, supporting local jobs, and contributing to the development of the communities where the oil company operates.
The promise also includes additional investments in the company’s portfolio and the expansion of its gas and LNG-focused businesses.
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