Santos chairman Keith Spence said he welcomed the merger.
“The merger combines two industry leaders to create a regional champion of quality, size and scale with a unique and diversified portfolio of long-life, low-cost oil and gas assets,” Spence said.
“We look forward to integrating our businesses to create one high performing team – with a vision of becoming a global leader in the energy transition.”
Santos managing director and chief executive officer Kevin Gallagher said the merger creates a stronger company.
“Santos and Oil Search are stronger together and will have increased scale and capacity to drive a disciplined, low-cost operating model and unrivalled growth opportunities over the next decade,” Gallagher said.
“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.”
Gallagher said the merger will also enable the company to meet its sustainability goals.
“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 programs in PNG and North America,” he said.
This follows the National Court of PNG approving the scheme of arrangement earlier this week.
Oil Search shareholders will acquire 0.6275 new Santos shares for each Oil Search share held on the record date of 14 December 2021.
After the merger’s implementation, three non-executive directors from Oil Search will join the Santos Board.
Santos’ head office will continue to be in Adelaide.
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