Saudi Aramco, ADNOC consider buying Santos, sending stock prices soaring

(MENAFN) Saudi Aramco and Abu Dhabi National Oil Company (ADNOC) are reportedly considering a bid to acquire Santos, an Australian gas company, a news that prompted a significant 6.5% rise in Santos shares during Thursday’s trading session.

The sources said Saudi Aramco and ADNOC are in the early stages of evaluating Santos as a potential acquisition target. The report also noted that Santos could attract interest from other potential buyers in addition to Middle Eastern oil giants.

In response to media inquiries, a Santos spokesperson said: “Santos does not comment on media speculation.” ADNOC chose not to comment, while Saudi Aramco did not respond to requests for comment.

Following the news, Santos shares jumped to as high as A$8.18 in early trading and were last seen up 5% at A$8.09. The company, headquartered in Adelaide, Australia, had a market capitalisation of US$16.63 billion as of Wednesday. Its shares have seen a modest gain of just over 1% since the start of the year.

Santos is known for its extensive assets in Australia, Alaska and Papua New Guinea, with a particular focus on its liquefied natural gas (LNG) business. Among its major projects is the Barossa gas project in waters off northwestern Australia. The project has faced challenges, including delays and cost increases due to legal disputes with an indigenous group over the proposed route of a pipeline from the field.

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