Oil and gas giant Santos agrees to extend due diligence period in ADNOC takeover
Australian oil and gas giant Santos, Middle East Energy Behemoth Adnoc, a special case detection window closely monitored to the inheritance Saga’ya for the second time to extend a major development.
Santos announced the second extension on Monday morning and reported to investors that he would submit to the Abu Dhabi National Oil Company for formalizing his offer until 19 September.
“On August 24, the XRG consortium confirmed that he could not find anything to withdraw the indicator proposal in his care,” he said.
“The consortium demanded a prolongation of the period of exclusivity to conclude the necessary care and to obtain all the approval of the consortium to enter a binding process.”
On August 11, Santos announced that it would extend the process until 22 August.
In June, Adnoc offered a 30 billion dollar transfer to Santos in June and accepted the Santos company’s “indicator proposal” or first offer.
In accordance with the agreement, the XRG, a subsidiary of an Adnoc, will buy all Santos’ shares for a cash price of $ 8,89, which represents a 28 percent premium in the closing price of the company’s shares before the announcement.
The status detection period provides special access to Santos’s secret information while preparing a final decision for XRG.
However, Santos, a company of 25 billion dollars, is a jewel in the corporate crown of Australia and a large domestic energy producer.
The possibility of foreign control of the country’s energy system drew attention from policy makers.
ADNOC, Foreign Investment Investigation Board, Australian Securities and Investments Commission, National Offshore Oil Headings Manager, and the US and Papua New Guinea officials will have to obtain a large number of approval.
Santos has a large oil and gas operation and project in South Australia, Western Australia, Queensland, PNG and Alaska.
The company said that the Barossa Gas Project of $ 5.7 billion outside Darwin in Timor Sea is currently completed by 98 percent and the first gas is expected to “close”.
In the first half of the 2025 financial year, the results of earnings, Santos, net profits after the tax of $ 677 million decreased by 33 percent compared to the previous year.
Meanwhile, revenues fell to $ 2.66 billion with a drop of 4.3 percent.
The company loans the low -low oil and gas prices during the fall.
Santos also provided $ 1.7 billion free cash flow from operations.
Kvin Gallagher, Chairman of the Executive Officer, said that the company’s “low -cost operating model” continued to support the flexibility of the business with “Continuous Struggle against Inflation during the commodity price cycle”.
“Another powerful cash flow year of our long -lasting gas assets has enabled us to offer shareholding returns while investing in our Barossa and Pikka development projects, which will bring new production this year and the next online.”
“Barossa LNG is expected to provide an increase of 30 percent in production by Pikka Phase 1 until 2027.”
Shareholders will receive a temporary dividend of 33.4C up to 10 percent.
Stocks in the company increased by 1 percent in the morning trade.
