Bloomberg reported that a consortium led by the Abu Dhabi energy major’s overseas investment vehicle XRG is looking to tap lenders to finance the acquisition of the Australian company
Abu Dhabi National Oil Company (Adnoc Group) is reportedly looking to raise more than $10bn from local and international banks, as well as major financial institutions, to fund its planned acquisition of Australian energy company Santos.
JPMorgan Chase & Co, the financial adviser to an Adnoc-led consortium that seeks to acquire Santos, is leading the financing round, Bloomberg reported.
Adnoc’s overseas investment vehicle, XRG, is leading the consortium, which also includes Abu Dhabi Development Holding Company (ADQ) and US-based investment firm Carlyle. The consortium made an $18.7bn all-cash offer in mid-June for the full acquisition of Santos.
Negotiations between the XRG-led consortium and Santos are progressing. The parties aim to sign a definitive agreement before the end of the exclusivity period on 19 September, which extends the initial due diligence period that ended in August.
The consortium’s mid-June bid valued Santos’ shares at $5.761 each, representing a significant premium over trading prices, which have since declined. Santos’ board previously stated it intends to support the proposal – provided there is no superior competing offer – and agreed to grant the consortium access to conduct due diligence under a confidentiality agreement.
Santos is a major energy company primarily operating in the gas production, liquefied natural gas (LNG), and carbon capture and storage (CCS) sectors, with assets in Australia, Papua New Guinea and the US.
Santos operates two LNG facilities in Australia: Darwin LNG and Gladstone LNG. It is also the majority shareholder in the PNG LNG project in Papua New Guinea, following its acquisition of Oil Search in 2021.
PNG LNG is considered one of the lowest-cost LNG projects globally. The company also recently received approval for another $2.3bn gas development – an onshore coal seam project that will supply the local market.
Santos and Adnoc already have ties, having signed an agreement in late 2023 to advance collaboration in CCS.
READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF
Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage
Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
> OLYMPICS: Qatar banks on infrastructure for Olympic bid > QATAR TOURISM: Olympics bid aims to extend tourism gains > CURRENT AFFAIRS: Syria charts post-war reconstruction course > INDUSTRY REPORT: Regional chemicals spending set to soar > DOWNSTREAM: Adnoc set to become a chemicals major > SAUDI STADIUMS: Stadiums become main event for Saudi construction > CONSTRUCTION: Middle East to be a growth leader for global construction > LEADERSHIP: Dubai’s sea-air logistics model powers resilient trade > KUWAIT MARKET FOCUS: Kuwait’s political hiatus brings opportunity |
To see previous issues of MEED Business Review, please click here
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