Australian, PNG Energy Groups Agree Merger
Umer Jamshaid 12 days ago Fri 10th September 2021 | 09:20 AM
Sydney, Sept 10 (UrduPoint / Pakistan Point News - 10th Sep, 2021 ) :Australian natural gas group Santos and Papua New Guinea's Oil Search agreed Friday on a merger to create a Aus$21 billion (US$15 billion) group with the financial heft to better compete in a low-carbon future.
Santos chief executive Kevin Gallagher, who will lead the merged group, said they would be stronger together, enjoying large scale, low operating costs and "unrivalled growth opportunities" for the next decade.
"The merger will create a company with a balance sheet and strong cashflows necessary to successfully navigate the transition to a lower carbon future," he said in the statement.
Among other conditions, the merger also needs the approval of the Papua New Guinea courts.
In early afternoon trade on the Australian stock exchange, Santos shares were up 1.16 percent at Aus$6.10. Shares in Oil Search, which is listed on the stock markets in both Australia and Papua New Guinea, rose 2.74 percent to Aus$3.75.