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
27 February 2026
The 25th WPC Energy Congress to take place in tandem as part of a coordinated week of high-level ministerial, institutional and industry engagements
26 February 2026
OPEC, upstream investors and refiners all face strategic shifts now the Asian behemoth is no longer the main engine of global oil demand growth
25 February 2026
Tech giants rather than oil majors could soon upend hydrocarbon markets, starting with North America
25 February 2026
Capex is concentrated in gas processing and LNG in the US, while in Canada the reverse is true
