Energy company Santos has reached a merger implementation agreement (MID) with Papua New Guinea-based Oil Search to create a consolidated entity with a market capitalization of 21 billion Australian dollars ($15.4 billion).

According to the terms of the merger agreement, Oil Search shareholders expect to receive 0.6275 new Santos shares for every Oil Search share held. Oil Search shareholders are expected to own approximately 38.5% of the combined company, and Santos shareholders will own approximately 61.5% of the shares.

According to Santos, the transaction is expected to establish a larger alliance in Papua New Guinea to support the development of key projects including Papua LNG. Santos Chairman Keith Spence said: "This merger represents an attractive combination of two industry leaders to create a regional champion of quality, scale and scale, with unique and diverse long-life, low-cost oil and gas. Asset portfolio." The combined entity will succeed in the new era of oil and gas, with various assets generating strong cash flow, providing a platform for self-financing growth and providing shareholder returns.

"We look forward to integrating our business to create a high-performance team-the vision is to become a global leader in the energy transition." It is expected to produce approximately 116 million barrels of oil equivalent in 2021, and the combined company will have 4.867 billion barrels of oil equivalent. The 2P+2C resource base. The entity plan is led by Kevin Gallagher, Santos managing director and chief executive officer.

Gallagher said: “Santos and Oil Search will become stronger together and will expand their scale and capabilities to promote a combined disciplined low-cost operating model and unparalleled growth opportunities in the next decade.” The merger will Create a company with a balance sheet and strong cash flow, by combining Santos’ leading CCS capabilities with Oil Search’s ESG plans in Papua New Guinea and Alaska, providing the necessary foundation for a successful transition to a low-carbon future, thereby providing a strong The basics.

Keywords: new energy, international engineering news, foreign engineering project information

Citigroup and JB North & Co acted as Santos’ financial advisors related to the transaction, and Herbert Smith Freehills and Dentons acted as legal advisors. In May 2020, Santos completed the acquisition of ConocoPhillips' assets in northern Australia and East Timor at a revised price of US$1.26 billion.Editor/Baohongying