$18.7 Billion! ADNOC to Lead Acquisition of Australian Oil and Gas Company Santos

On June 16, Australian oil and gas producer Santos announced it had received, on June 13, a $18.7 billion (approximately RMB 134 billion) takeover offer from a consortium led by the United Arab Emirates' Abu Dhabi National Oil Company (ADNOC).

The consortium is led by XRG, ADNOC's investment division, together with Abu Dhabi Developmental Holding Company and private equity firm The Carlyle Group. It proposes to acquire Santos shares at $5.76 per share (approximately A$8.89), representing a 28% premium over last Friday’s closing price.

Santos’ board stated that if both parties reach a binding implementation agreement and no superior offer emerges, it will recommend shareholders vote in favor of the potential transaction.

Santos is a major Australian natural gas supplier with operations across Australia, Papua New Guinea, Timor-Leste, and the United States. It owns three world-class liquefied natural gas (LNG) projects (PNG, Gladstone, Barossa to Darwin), focusing on meeting Asia's growing demand for LNG.

Annual reports show that in 2024, Santos produced 87.1 million barrels of oil equivalent in oil and gas, sold 91.7 million barrels, achieved revenue of $5.4 billion, and reported an after-tax net profit of $1.2 billion.

In late 2024, Abu Dhabi National Oil Company announced the establishment of XRG, a new low-carbon energy and chemicals investment company valued at over $80 billion, focused on investing in three key areas: gas, chemicals, and low-carbon energy. Among them, the XRG International Gas Platform aims to build a world-class integrated gas investment portfolio to meet the projected 15% global gas demand growth over the next decade.