Saudi Aramco and Abu Dhabi National Oil have been separately studying potential bids for Australia’s Santos as the Middle Eastern energy giants seek to ramp up their gas investments overseas, people with knowledge of the matter said.
State-owned Aramco and ADNOC have been conducting preliminary evaluations of Santos as a possible acquisition target, the people said, asking not to be identified because the information is private. Shares of Santos have gained about 1 per cent this year, giving the company a market value of $24.9 billion.Santos has liquefied natural gas projects in Australia, Papua New Guinea and Timor-Leste that are prized for their proximity to fast-growing demand from Asia.
Santos has received several takeover approaches in recent years. In 2018, Santos rejected multiple offers from US-based Harbour Energy. Woodside had heldGulf countries are investing billions of dollars in gas, which is seen as an important bridge fuel in the energy transition. Qatar plans to nearly double LNG export capacity, and Saudi Arabia and the United Arab Emirates are pumping cash into domestic fields and building trading operations globally.
ADNOC has been pursuing a string of acquisitions that have turned it into one of the energy industry’s most active dealmakers. It entered detailed negotiations last month over a potential €11.7 billion takeover of German chemical producer Covestro. In May, ADNOC picked up stakes in gas projects in the US and Mozambique, and has ambitions to expand in chemicals and trading operations globally.
Adelaide-based Santos could also attract interest from other potential buyers, the people said. Deliberations are ongoing, and the suitors haven’t decided whether to proceed with any proposals, the people said.A representative for ADNOC declined to comment, while a spokesperson for Aramco didn’t immediately respond to a request for comment. A representative for Santos couldn’t immediately be reached.
Energy Energy Latest News, Energy Energy Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: brisbanetimes - 🏆 13. / 67 Read more »
Source: smh - 🏆 6. / 80 Read more »