XRG and Carlyle 'aligned' on growth investments to secure Santos' future
Santos will shortly update investors on whether a firm offer from Abu Dhabi National Oil Company's offshore investment arm XRG and Carlyle Partners is imminent.
ADNOC’s XRG and Carlyle Group are quietly confident their $36.4 billion bid for oil and gas giant Santos will overcome any national interest concerns as they firm up long-term plans to unlock additional gas supplies for Australia’s eastern states.
A source with direct knowledge of the situation, who was granted anonymity to speak freely, told Capital Brief that the Abu Dhabi oil company’s offshore investment arm and its partners were still committed to the bid and "aligned" on the need to inject growth capital into Santos' mature infrastructure-heavy assets, which will require considerable amounts of capital to extend their lifespans and identify new exploration sites.
The source maintained the alignment puts the deal in Australia’s national interest because it would help secure the gas required to power Australian homes and peaking power plants as the energy grid transitions away from coal power stations towards renewable energy.
The source would not be drawn on whether the investors had as yet lodged an application for Foreign Investment Review Board clearance. The deal will also need the blessing of Treasurer Jim Chalmers.
