Australia’s Santos announced on Monday that it has extended the period of exclusive due diligence for an international consortium led by Abu Dhabi National Oil Company (ADNOC). The offer, valued at $18.7 billion, targets Australia’s second-largest gas producer. The new deadline for the due diligence process is August 22. The proposal, first revealed in mid-June, includes ADNOC’s investment arm XRG, Abu Dhabi Development Holding Company (ADQ), and private equity firm Carlyle. The consortium had offered $5.76 (A$8.89) per Santos share.
Strategic Stakes in Australia and Papua New Guinea
XRG is now close to securing a deal that would provide stakes in significant operations across Australia and Papua New Guinea, subject to regulatory approval. Santos has already voiced its support for the acquisition. If completed, the transaction will give ADNOC a stronger foothold in the Asia-Pacific energy sector. This move reflects ADNOC’s broader ambition to expand its global reach while maintaining competitive positioning in the liquefied natural gas (LNG) market.
Global LNG Platform Amid Geopolitical Shifts
If the agreement is finalised, Santos will become the Asia-Pacific platform for ADNOC’s global LNG business. This aligns with ADNOC’s strategy to diversify beyond the Middle East, especially at a time when geopolitical tensions in the region are influencing global energy markets. The acquisition could also enhance LNG supply security for Asia-Pacific markets while positioning ADNOC for long-term growth in the sector.
