Santos, trading on the Australian stock exchange, has also confirmed these preliminary merger talks, but cautions that this corporate courtship is still in its infancy, with no formal agreement in place.
A Chess Game of Corporate Strategy
Both Woodside and Santos have declared this exploratory phase a routine strategy to amplify shareholder value. However, Santos is also cleverly eyeing “alternative structural options,” adding a layer of intrigue to the proceedings.
Industry seers point to a brewing storm of consolidation in the oil and gas sector, a sentiment echoed by Jeffrey S. Oliver, an antitrust partner at Baker Botts LLP. “We’re witnessing not just isolated incidents but the dawn of a new consolidation epoch in the industry,” Oliver remarked, highlighting recent colossal deals by Exxon Mobil Corp. and Chevron Corp., totaling nearly $113 billion.
Australia’s Global Energy Footprint
Australia, a titan in the global energy chessboard, exports a mammoth 80% of its crude oil. In a historic leap in 2019, it eclipsed Qatar to become the world’s premier exporter of liquefied natural gas (LNG).
