Abu Dhabi National Oil Co. has made an $18.7 billion offer for Australian fossil fuel producer Santos Ltd., in one of the most audacious overseas moves yet by the Middle Eastern company as it seeks to expand its production of liquefied natural gas.
ADNOC’s investment arm XRG, in consortium with Abu Dhabi Development Holding Company (ADQ) and investment firm Carlyle, has submitted a final non-binding indicative proposal to acquire 100% of Australian independent E&P player Santos, the companies announced on Monday.
Launched in August 2021, this new phase called “Mero-4” will connect 12 wells to the new Alexandre de Gusmão FPSO (Floating Production, Storage and Offloading) unit, with a production capacity of 180,000 barrels of oil per day (bpd). This project has been designed to minimize greenhouse gas emissions, with reinjection of the associated gas into the reservoir and zero routine flaring.