Latest news with #DarwinLNG
Yahoo
9 hours ago
- Business
- Yahoo
ADNOC Led Consortium Bids to Take Over Australian Gas Giant
Australia's Santos has said it would accept an $18.7-billion takeover offer made by a consortium led by Emirati Adnoc, which values the company's stock at a 28% premium to its closing price last Friday. The Emirati energy giant, acting through its investment arm XRG, teamed up with Abu Dhabi Development Company and private equity major Carlyle on the offer, which is motivated by Adnoc's global gas expansion plans. Santos operates two large LNG facilities in Australia: Darwin LNG and Gladstone LNG. Santos is also the majority shareholders in the PNG LNG project in Paua New Guinea, after taking over Oil Search back in 2021. PNG LNG is considered one of the lowest-cost LNG projects globally and, according to Reuters, is the most attractive of its assets. The company also recently got the green light on another gas project, this time an onshore coal seam project, which will supply the local market and which will cost $2.3 billion to develop. 'The Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation agreement, it intends to unanimously recommend that Santos Shareholders vote in favour of the potential transaction, in the absence of a superior proposal,' Santos said in its statement. While the Australian gas company's leadership may be in favor of the deal, regulators may have misgivings, which makes the future of the deal uncertain. Santos controls critical energy infrastructure in Australia, MST Marquee senior energy analyst Saul Kavonic said, as quoted by Reuters, which would make regulatory approval of its takeover by a foreign company a challenge. Yet approval from Papua New Guinea is also unlikely, analysts pointed out. In total, the companies need the go-ahead from six separate agencies in Australia, Papua New Guinea, and even the United States, to proceed with the deal. By Irina Slav for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
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Factbox-Australia's Santos targeted by ADNOC-led consortium
SINGAPORE (Reuters) - Abu Dhabi's National Oil Company (ADNOC), looking to grow a global gas business, is leading a proposed $18.7 billion takeover of Australia's second-largest independent gas producer, Santos, which has backed the planned bid. Below are key details on Santos' production and reserves in million barrels of oil equivalent (mmboe), its domestic and international oil and gas assets, and a list of its long-term liquefied natural gas (LNG) deals. HEADLINE NUMBERS 2024 production (mmboe) Domestic: 47.6 International: 39.5 Total: 87.1 2025 total production forecast: 90-97 Proved plus probable reserves (mmboe) at end-2024: 1,559 ASSETS AND PROJECTS Santos operates Darwin LNG and Gladstone LNG in Australia, and holds stakes in PNG LNG and the undeveloped Papua LNG project in Papua New Guinea. The company expects output to cease in 2025 at the Bayu-Undan field off East Timor, which feeds the Darwin LNG plant. It plans to replace that supply with gas from the Barossa field, due to start producing in the third quarter of 2025. Santos is a major producer of gas for the domestic market in Western Australia, with stakes in two offshore oil fields, Van Gogh and Pyrenees. It operates two of the state's domestic gas plants, Varanus Island and Devil Creek, and is a partner in the Macedon plant. On Australia's east coast, it produces gas in the Cooper Basin for the domestic market and coal seam gas for the Gladstone LNG export plant. It is also looking to develop the Narrabi coal seam gas project to supply southeast Australia, which faces a gas shortfall from 2027. In the U.S., Santos is developing the Pikka oil project in Alaska, expecting first production in mid-2026. LNG DEALS LNG sales volume in 2024: 5.084 million metric tons In December, Santos signed a 12-year deal to supply Japanese gas distributor Shizuoka Gas with 0.35 million to 0.4 million tons per annum of LNG from 2032. Santos will also supply 20 cargoes or 0.5 million tons of LNG per annum to the Singapore unit of TotalEnergies for a little over three years, from the fourth quarter of 2025. It also inked a deal to supply Glencore Singapore with 19 cargoes or 0.5 million tons of LNG from the fourth quarter of 2025 over three years plus one quarter. Last May, Santos agreed to supply Japanese energy firm Hokkaido Gas with 0.4 million tons of LNG per annum for 10 years, from 2027.
