Oil Search rejects $16bn merger approach from Santos

Oil Search rejects $16bn merger approach from Santos

Australia’s Santos said today that it approached compatriot Oil Search about a potential merger last month. However, the offer to create an energy company with a market value of $16.1 billion was rejected by Oil Search, which has major stakes in Papua New Guinea’s (PNG’s) emerging liquefied natural gas (LNG) sector.

Santos said that it is still trying to discuss the merits of a deal with Oil Search. “The potential merger of Santos and Oil Search is a logical combination of two industry leaders to create an unrivaled regional champion of size and scale,” Santos said in a statement today.

PNG-focused Oil Search is a takeover target