Some analysts question the Oil Search valuation
Santos’ Oil Search premium raises eyebrows
The deal’s revised terms may require a greater focus on cost efficiency
Papua New Guinea (PNG)-focused Oil Search announced in early August that it had agreed to a revised merger offer from Australian independent Santos after rejecting a previous offer made in late June. Under the terms of the proposal, which would create Australia’s largest oil and gas company, Oil Search investors will receive 0.6275 new Santos shares for each Oil Search share. This would imply a transaction price of A$4.29 per Oil Search share, based on the companies’ 19 July closing prices, and give Oil Search a 38.5pc stake in the merged unit. A$4.29 – Revised offer per Oil Search share The new offer represents a 16.8pc premium to Oil Search’s 19 June closing price, up from the 12.3
Also in this section
14 July 2025
Robust demand and a limited supply of additional physical barrels from key OPEC+ producers has kept the oil market in a healthy price range
11 July 2025
Equinor and its partners at Norway’s largest oilfield have pulled the trigger on a fresh $1.3b investment that will maintain high output for longer
11 July 2025
Reassessment of the country’s export-facing gas policy coincides with worsening domestic market backdrop
10 July 2025
Without sanctions relief, there is little reason to believe the latest potential attempt at exports from the Russian liquefaction project will be more successful than the one last summer
