Energy Policy & Regulation

Santos Limited has announced an extension to its process and exclusivity deed with the XRG Consortium, which is led by XRG P.J.S.C., a subsidiary of the Abu Dhabi National Oil Company (ADNOC). The consortium, which also includes the Abu Dhabi Development Holding Company and global investment firm Carlyle, is seeking to acquire all issued shares in Santos through a scheme of arrangement. The offer currently stands at US$5.761 per share in cash.

Originally, the exclusivity period was scheduled to conclude on 22 August 2025, but it has now been extended to 19 September 2025. This extension gives the consortium additional time to complete its due diligence process and secure the necessary regulatory and internal approvals required to proceed with a binding agreement. According to the consortium, their due diligence has not uncovered any issues that would prevent them from moving forward with their indicative proposal.

As discussions progress, the parties are working toward finalising a Scheme Implementation Agreement (SIA), which would provide terms and protections for Santos shareholders in the event of delays or unexpected developments. While this indicates forward movement in negotiations, both parties have made it clear that there is no guarantee an SIA will be executed or that the transaction will ultimately go ahead.

In the meantime, Santos shareholders have been advised that no immediate action is required. The company has committed to providing timely updates in accordance with its continuous disclosure obligations, as the situation continues to evolve.