Santos announced on Monday that it has extended the period of exclusive due diligence to a consortium led by ADNOC’s XRG and including Abu Dhabi Development Holding Company (ADQ) and Carlyle. The consortium had previously proposed the acquisition of all ordinary shares on issue in Santos for a cash offer price of $18.7 billion or $5.76 per share.
The period for exclusive due diligence has been extended until August 22, the company said.
Deal to mark largest all-cash corporate buyout in Australian history
“The XRG consortium has now substantially completed due diligence in relation to the Potential Transaction under the Process and Exclusivity Deed dated 27 June 2025,” said Santos.
It added that the consortium has confirmed it has not discovered anything to date that would cause the XRG consortium to withdraw its proposal and has confirmed its commitment to working constructively with Santos to complete the due diligence promptly and agree on a binding transaction.
Once finalized, ADNOC’s XRG would have signed the largest all-cash corporate buyout in Australian history, according to FactSet data. It would also be the third-largest takeover ever in Australia, the data showed.
With this deal, the XRG consortium would gain access to two Australian liquefied natural gas operations, as well as stakes in PNG LNG and the undeveloped Papua LNG. The company is also developing an oil project in Alaska, due to start producing in mid-2026.
XRG said in June it aims to build a gas and LNG business with a capacity between 20 million and 25 million metric tons a year by 2035. Last year, Santos sold 5.08 million tons of LNG, with more than 60 percent of that coming from Papua New Guinea.
Read: ADNOC’s brand value grows to $19 billion in 2025, rising to 6th most valuable globally
XRG to accelerate Santos’ growth
In a statement, earlier this year, XRG said the consortium brings extensive sector experience, long-term vision and investment capacity, and aims to ensure that Santos continues to thrive as a business.
Subject to implementation of the proposal, the XRG-led consortium intends to maintain Santos’ headquarters in Adelaide, brand, and operational footprint in Australia and key international operating hubs. It aims to work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates.
Furthermore, it seeks to invest in Santos’ growth and further development of its gas and LNG-focused business, which will provide reliable and affordable energy and low-carbon solutions to customers in Australia, the Asia Pacific and beyond. This will reinforce Australia’s position as a responsible energy partner and contributor to domestic and regional energy security.
Finally, it aims to ensure Santos remains a contributor to the transformation of energy systems and continues to make future-facing investments in Santos’ carbon capture and storage projects, low carbon fuels, other decarbonization initiatives and the application of AI to drive efficiency and value across operations.
