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Santos Ltd has submitted an authorization application to the Independent Consumer and Competition Commission (ICCC) seeking clearance for its proposed merger with Oil Search Ltd.
Santos and Oil Search have agreed to a binding merger implementation deal, according to ICCC Commissioner and Chief Executive Officer Paulus Ain, under which Santos planned to combine with Oil Search under a scheme of arrangement under PNG law.
“Upon successful implementation of the (deed), Santos will acquire all the shares in Oil Search and the current shareholders of Oil Search will own (around) 38.5 per cent shares in Santos,” he said.
The stockholders of Santos will own the remaining 61.5 per cent.
“Authorisation for business mergers and acquisitions under the ICCC Act is a statutory process through which businesses seek approval from the ICCC before proceeding with any business mergers and acquisitions that would otherwise raise serious competition concerns and potentially breach the Act,” he said.
The ICCC is required under the protocol to solicit stakeholder comments/submissions on every proposed transaction under review.
“The ICCC is therefore inviting relevant stakeholders and the general public to provide comments and submissions on the likely competitive effects this proposed merger. “All comments and submissions should reach the ICCC by or before Monday, Nov 22, 2021.”
Santos is an Australian energy firm that specializes in hydrocarbon exploration, development, production, transportation, and marketing (crude oil and natural gas).
It is a major natural gas provider and the largest domestic gas supplier in Australia and Asia, with ambitions to become the dominant Asia-Pacific LNG supplier.
Santos does not own or operate any assets in PNG; instead, it owns ownership interests in projects run by other parties or Joint Venture partners.
All of PNG's producing oil fields are operated by Oil Search. Except for ExxonMobil, Oil Search exports and provides condensate (crude oil) to both international and domestic markets on behalf of its JV partners.
PNG's only oil pipeline and oil processing facilities are both owned by Oil Search.
Reference: The National (15 November 2021). “Santos seeking to cement deal”.
