Saudi Aramco refutes speculation on Santos bid

Image credit: Getty Images

Shares of Australian gas-focused company Santos dropped during early morning trading on Friday after Saudi Aramco denied any intention of acquiring the company.

Initially, Saudi Aramco had issued a “no comment” response to media reports suggesting that it was considering a bid for Santos. However, the Saudi oil giant later clarified that these reports were “inaccurate.”

In a statement to Reuters, Saudi Aramco refuted the media claims, emphasising, “With reference to recent media reports claiming that Aramco is considering an offer for Santos, the company can confirm that such claims are inaccurate.”

The speculation began with a Bloomberg report indicating that both Saudi Aramco and the UAE’s Abu Dhabi National Oil Company (ADNOC) were separately evaluating bids for Santos, an Australian gas producer.

Santos’ LNG operations

Furthermore, it is reported that other parties are also assessing the potential acquisition of Santos, which possesses gas and liquefied natural gas assets in Australia and Papua New Guinea. Santos had been in merger talks with Woodside Energy to create a $52bn global LNG company, but the negotiations collapsed in February this year.

At the time, Santos said it would continue to review options to unlock value for its shareholders.

Adelaide-based Santos, is Australia’s no 3 producer of liquified natural gas.

In the past, Santos has rejected takeover bids from US and Australian competitors, as well as offers to buy just its LNG business.

Read: ADNOC weighs possible bid for Australian gas company Santos, sources say