The latest offer follows two earlier confidential, non-binding, and indicative proposals from the XRG Consortium to acquire 100% of Santos shares

Australian oil and gas explorer Santos received an $18.7 billion acquisition bid from a consortium led by Abu Dhabi National Oil Co. (Adnoc), it said in a press release on Monday.

The XRG Consortium includes Adnoc’s subsidiary XRG P.J.S.C, Abu Dhabi Development Holding Company (ADQ) and Carlyle.

The proposal is to acquire all of Santos's ordinary shares on issue for a cash offer price of $5.76 (A$8.89) per Santos share via a scheme of arrangement. This represents a 28% premium to Friday’s closing price of A$6.96.

The latest offer follows two earlier confidential, non-binding, and indicative proposals from the XRG Consortium to acquire 100% of Santos shares — first at US$5.04 per share in cash on March 21, 2025, and then at US$5.42 per share in cash on March 28, 2025.

Goldman Sachs and JB North & Co are acting as financial advisers to Santos; Rothschild & Co is acting as independent board adviser. 

The bid marks Adnoc’s latest push to expand its presence in the liquefied natural gas (LNG) space, as Middle Eastern energy giants like Saudi Aramco increasingly focus on one of the world’s fastest-growing energy markets.

The deal could give Adnoc significant stakes in key energy operations across Australia and Papua New Guinea.

If the deal follows through, the XRG-led consortium would take control of two key Australian LNG projects — Gladstone LNG and Darwin LNG — and interests in PNG LNG and the undeveloped Papua LNG.

The consortium is also advancing the Pikka oil project in Alaska, which is expected to begin production by mid-2026.

In June, XRG announced plans to build a gas and LNG portfolio with an annual production capacity of 20 to 25 million metric tons by 2035.

Santos’ shares closed up nearly 11% at A$7.7 on Monday.

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