Santos and Oil Search complete merger consolidating power in PNG LNG

Santos and Oil Search complete merger consolidating power in PNG LNG

The merger of Australia’s Santos (ASX:STO) and Papua New Guinea-focused Oil Search is now complete following shareholder approvals and the blessings of PNG.

The deal gives Santos a much more powerful position in PNG’s petroleum industry – a 42.5% stake in in the flagship PNG LNG project, operated by ExxonMobil (NYSE:XOM), a 22.8% stake in the proposed Papua LNG project, operated by TotalEnergies (LON:TTE), and a leading position in Highlands gas fields, including a 51.2% stake in the P’nyang field that was previously targeted to underpin a third train at PNG LNG. A sell-down of about 10% of PNG LNG is considered likely by analysts, reported Australian consultancy Energy Quest.

The merger creates a regional champion of size and scale, with a market capitalisation of about A$22 billion (US$15.7 billion), Santos said today.