Adnoc and Aramco consider bids for Australia’s Santos

Santos

State-backed oil companies of the UAE and Saudi Arabia are considering bidding for Australia’s energy company, Santos, according to a media report.

Aramco and Abu Dhabi National Oil Company (Adnoc) are conducting preliminary studies on acquiring Santos, Bloomberg said, adding no bids have been finalised.

Shares of Santos rose nearly 1 percent on the Australian Securities Exchange on Wednesday, taking the market value to A$24.9 billion ($16.7 billion).

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The Adelaide-based company has liquefied natural gas projects in Australia, Papua New Guinea and Timor-Leste, the report said.

Saudi Arabia, Qatar and the UAE are building their international LNG portfolios as they step up competition with global oil majors. 

Last month Aramco signed a non-binding agreement to buy 5 million tonnes per year of LNG for 20 years and a 25 percent stake in phase 2 of Sempra’s Port Arthur project in the US.

• Adnoc makes final bid for German chemicals maker
• Aramco ventures further into US LNG market
• Saudi Aramco boosts gas network with $25bn deals

The UAE’s Adnoc acquired a 10 percent stake from Portugal’s Galp Energia in the Rovuma basin concession in Mozambique as part of its global growth strategy in May.

In June, Adnoc awarded an AED20.2 billion ($5.5 billion) engineering, procurement and construction contract for its low-carbon intensity Ruwais liquefied natural gas project.

Global LNG demand is forecast to grow by 50 percent by 2040, driven by China and South Asia, as industries switch from coal to gas, according to Shell’s LNG outlook.