Saudi Aramco And ADNOC Reportedly Weighing Bids For Australian LNG Firm Santos
Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) are separately considering bids for Santos, according to Bloomberg News. This news led to a 6.5% rise in shares of the Australian gas producer on Thursday.
Santos has been a target for potential buyers due to its extensive liquefied natural gas (LNG) business. The company holds assets in Australia, Alaska, and Papua New Guinea (PNG), including a significant stake in PNG LNG.
Interest from Major Oil Companies
Both Saudi Aramco and ADNOC have been conducting preliminary evaluations of Santos as a possible acquisition target, sources said. These sources requested anonymity due to the private nature of the information.
The report also mentioned that other potential buyers might show interest in Santos. However, deliberations are ongoing, and no decisions have been made regarding any proposals.
"Santos does not comment on media speculation," a company spokesperson stated. Saudi Aramco did not immediately respond to Reuters' request for comment, while ADNOC declined to comment.
Santos shares surged to A$8.18 at their peak and last traded up 5% at A$8.09, outperforming a 1% rise in the benchmark S&P/ASX200 index. As of Wednesday's close, Adelaide-based Santos had a market capitalisation of $16.63 billion, marking a 1% increase since the start of the year.
Last year, Santos produced 91.7 million barrels of oil equivalent (mmboe) and had proven plus probable reserves of 1,661 mmboe by year-end.
The company's largest development project is the Barossa gas project located off northwestern Australia. This project has encountered delays and cost increases due to legal disputes with an Indigenous group over the planned route for a gas pipeline from the field.
Santos has been under scrutiny by various suitors over recent years because of its valuable LNG assets. The company's operations span across multiple regions, making it an attractive acquisition target.
The interest from major oil companies like Saudi Aramco and ADNOC highlights Santos' strategic importance in the global energy market. However, it remains uncertain whether these companies will proceed with formal bids.
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