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
10 March 2026
From Venezuela to Hormuz, the US—backed by the most powerful military force ever assembled—is redrawing not only oil and gas flows but also the global balance of energy power
10 March 2026
By shutting the Strait of Hormuz, Iran has cut exports of distillate-rich Middle Eastern crude, jet fuel and diesel, and is holding the energy market hostage
10 March 2026
Eni’s director for global gas and LNG portfolio, Cristian Signoretto, discusses how demand will respond to rising LNG supply, and how the company is expanding its own gas and LNG operations through disciplined, capital-efficient investments
9 March 2026
Petroleum Economist analysis sees increases in output from Saudi Arabia, Venezuela and Kazakhstan among others before region’s murky descent
