Latest news with #XRGPJSC
Gulf Insider
3 days ago
- Business
- Gulf Insider
Abu Dhabi Makes Major Push Into LNG With $19 Billion Santos Takeover
Abu Dhabi is making its biggest energy play yet, as it seeks to become a major global force in liquefied natural gas (LNG). Its state oil company, ADNOC, through its investment arm XRG PJSC, has led a $19 billion takeover offer for Australia's Santos Ltd., a move that would give it direct access to LNG production and exports into booming Asian markets, according to Bloomberg. 'Abu Dhabi is long oil, but is seeking to be a more material player in LNG markets,' said Bernstein analysts led by Neil Beveridge. 'The acquisition of Santos would help enable Adnoc to become a bigger LNG player in key growth markets in Asia.' Santos' LNG capacity is expected to hit 7.5 million tons annually once Australia's Barossa project begins later this year. Combined with ADNOC's existing 6 million tons of domestic LNG capacity and a planned 9.6 million-ton terminal, the deal would position Abu Dhabi as a competitive mid-tier global LNG supplier. 'If completed, the deal could push Adnoc into the ranks of majors like Shell and ExxonMobil,' Bernstein analysts noted. Bloomberg Intelligence adds that it could give Adnoc a 15–20 million ton per year (MTPA) portfolio, depending on how it scales operations. 'It would still be a big leap from where they are now, which is mostly domestic-focused,' said BI analyst Salih Yilmaz. Bloomberg writes that the acquisition also advances Abu Dhabi's broader strategy: convert oil wealth into sustainable economic growth. Beyond LNG, the UAE is investing in tech, tourism, and manufacturing while aiming for gas self-sufficiency this decade. XRG PJSC, ADNOC's $80 billion investment arm launched in late 2023, is leading the charge. It aims to double its value within 10 years and become one of the top five integrated global gas and LNG businesses. XRG already has LNG deals in place, including a 20-year supply contract for 1.9 million tons per year from NextDecade's Rio Grande LNG in the U.S. With Santos' addition, XRG's portfolio would swell to about 14 million tons per year in projects, stakes, and supply contracts — expanding its reach into high-demand Asian markets and reducing reliance on U.S. deals.
Perth Now
6 days ago
- Business
- Perth Now
$30bn bid for this Aussie company
A UAE-led consortium of investors has made a nearly $30bn bid to take over Australian-listed oil and gas producer Santos. The offer is for the acquisition of all ordinary shares on issue in Santos for $8.89 per share. This means shareholders in the company will get a 28 per cent premium on their stocks since last Friday's closing price of $6.96. The non-binding indicative proposal has been insured by a consortium led by XRG PJSC, a subsidiary of Abu Dhabi National Oil Company, as well as Abu Dhabi Development Holding Company and US private equity group Carlyle. The Santos board said it supported the takeover. NewsWire / RoyV photography Credit: News Corp Australia The move follows two previous confidential cash offers made by the XRG- consortium on March 21 for $8 per share. The deal still remains subject to conditions, including regulatory approvals from authorities in Australia, the US, and Papua New Guinea. Santos also warned that there was no certainty the proposal would result in a transaction. As a result, Santos said shareholders did not need to take any action in relation to the indicative proposal at this stage. 'Santos notes that there is no certainty that the XRG consortium will enter into a binding SIA or that a potential transaction will proceed,' the company said in a statement. 'Santos will continue to keep its shareholders informed in accordance with its continuous disclosure obligations.' The board thinks it's in the best interest of shareholders to provide the XRG consortium with access to confidential information to start the due diligence process. If terms are reached, the board intends to unanimously recommend shareholders agree on the deal. This is in the absence of a superior proposal and subject to the independent expert's report.
West Australian
6 days ago
- Business
- West Australian
Abu Dhabi oil giant makes $30bn bid for Santos
A UAE-led consortium of investors has made a nearly $30bn bid to take over Australian-listed oil and gas producer Santos. The offer is for the acquisition of all ordinary shares on issue in Santos for $8.89 per share. This means shareholders in the company will get a 28 per cent premium on their stocks since last Friday's closing price of $6.96. The non-binding indicative proposal has been insured by a consortium led by XRG PJSC, a subsidiary of Abu Dhabi National Oil Company, as well as Abu Dhabi Development Holding Company and US private equity group Carlyle. The move follows two previous confidential cash offers made by the XRG- consortium on March 21 for $8 per share. The deal still remains subject to conditions, including regulatory approvals from authorities in Australia, the US, and Papua New Guinea. Santos also warned that there was no certainty the proposal would result in a transaction. As a result, Santos said shareholders did not need to take any action in relation to the indicative proposal at this stage. 'Santos notes that there is no certainty that the XRG consortium will enter into a binding SIA or that a potential transaction will proceed,' the company said in a statement. 'Santos will continue to keep its shareholders informed in accordance with its continuous disclosure obligations.' The board thinks it's in the best interest of shareholders to provide the XRG consortium with access to confidential information to start the due diligence process. If terms are reached, the board intends to unanimously recommend shareholders agree on the deal. This is in the absence of a superior proposal and subject to the independent expert's report.
