XRG-Led Consortium Submits Non-Binding Offer To Acquire Santos Energy Company In Australia

XRG, the international investment division of ADNOC, has revealed that a consortium led by XRG has put forward a non-binding offer to purchase Santos. Santos is a prominent energy company known for delivering reliable and cleaner energy solutions in Australia and the Asia Pacific. The consortium plans to conduct thorough due diligence, with the proposal contingent on several conditions before any binding agreement or transaction can proceed.

The headquarters of Santos is located in Adelaide, Australia. Its operations extend across Australia, Papua New Guinea, and the United States. The company boasts a varied portfolio that includes natural gas, LNG, and oil assets. Additionally, Santos is investing in carbon capture and storage (CCS) and hydrogen technologies to advance low-carbon fuels supporting decarbonisation objectives.

The proposed acquisition aligns with XRG's strategy to expand its international gas, chemicals, and energy solutions. This move aims to meet rising demand while unlocking significant value for stakeholders. The consortium offers long-term investment capacity and strategic expertise that could enhance gas supply for Santos' customers, bolstering both domestic and international energy security.

Santos' Board has reacted positively to the offer. They have announced their intention to unanimously recommend the proposal from the XRG-led consortium to shareholders. However, this proposal depends on reaching a binding agreement after completing due diligence and obtaining necessary regulatory and corporate approvals.

ADNOC's exceptional trading and shipping capabilities are expected to further boost Santos' operations. This enhancement would provide a more comprehensive service to customers while maximising value. The collaboration aims to create synergies that benefit both companies by leveraging ADNOC's strengths in logistics and trade.

The transaction remains subject to various conditions before any binding offer is made or any deal proceeds. These conditions include confirmatory due diligence by the consortium. The potential acquisition represents a strategic opportunity for XRG to expand its footprint in the energy sector while supporting global energy needs.

This development underscores XRG's commitment to scaling up its operations internationally. By acquiring Santos, XRG seeks not only to increase its market presence but also to contribute positively towards sustainable energy solutions through innovative technologies like CCS and hydrogen.

With inputs from WAM