End of an era, merger complete

THE merger of Santos and Oil Search is now effective following the approval of Oil Search shareholders and the ruling by the National Court, according to Santos.
Santos will today be admitted to the official list and start trading on the Papua New Guinea Stock Exchange (PNGX).
Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held as of tomorrow. Santos chairman Keith Spence said: “The merger combines two industry leaders to create a regional champion of quality, size and scale with a unique and diversified portfolio of longlife, low-cost oil and gas assets.
“We look forward to integrating our businesses to create one high performing team – with a vision of becoming a global leader in energy transition.”
Santos managing director and chief executive officer Kevin Gallagher said Santos and Oil Search “are stronger together and will have increased scale and capacity to drive a disciplined, low-cost operating model and unrivaled growth opportunities over the next decade.
“The merger creates a company with strong and diversified cash flows, providing a platform to deliver shareholder returns and successfully navigate the transition to a lower carbon future.
“Additionally, the merger builds on our industry-leading approach to ESG through the combination of Santos’ leading carbon capture and storage capabilities with Oil Search’s social programmes in PNG and North America.”
Three non-executive directors from Oil Search will join the Santos board. Santos’ head office will remain in Adelaide. PNGX chairman David Lawrence said Oil Search was one of the original companies to be listed on the PNGX when it began trading.
“Farewelling Oil Search is the end of an era for the exchange and PNG,” Lawrence said.
“However, Santos joining the market is the beginning of a new one.”