Australian energy producers Santos, Oil Search set to merge
Aug. 01, 2021 10:07 PM ETOil Search Limited (OISHF), STOSFOISHF, STOSFBy: Carl Surran, SA News Editor
- Oil Search (OTCPK:OISHF) says it agrees to an improved takeover offer from Santos (OTCPK:STOSF) that would create one of the world's 20 largest oil and gas companies, with a market value of more than A$22B (US$16B).
- Oil Search is Papua New Guinea's largest oil producer and owns a minority stake in the Exxon-operated PNG LNG gas-export project in the country, which also includes Santos as an investor; Oil Search also owns undeveloped oil reserves in Alaska that it hopes to develop if it can bring in another investor.
- Santos' gas portfolio in Australia includes the Gladstone LNG export facility in Queensland and the Darwin LNG plant in the Northern Territory.
- Santos is offering 0.6275 of its own shares in exchange for each Oil Search share, less than two weeks after Oil Search rejected an earlier proposal for 0.589.