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Adnoc withdraws $18.7 billion bid to acquire Santos

The consortium led by Adnoc ends its acquisition plans for Santos, the Australian liquefied natural gas supplier, citing commercial and contractual factors that impacted the evaluation of its offer.

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Abu Dhabi National Oil Company (Adnoc), through its subsidiary XRG, has announced the withdrawal of its indicative bid to acquire Santos Limited, an Australian producer of liquefied natural gas (LNG). The transaction, initially valued at $18.7 billion, aimed to establish a global LNG player with a strengthened footprint in Asia-Pacific markets.

The consortium, which also includes the Abu Dhabi Developmental Holding Company (ADQ) and private equity firm The Carlyle Group, stated it would not proceed with firm offer negotiations. In a joint statement, the partners said that “multiple factors, considered collectively,” had altered their initial approach, without specifying the exact nature of those elements.

A withdrawal without apparent hostility

Adnoc maintained a neutral stance regarding Santos’ outlook, stating that the consortium “maintains a positive view on the company’s operations.” However, a thorough review of the project implementation agreement required by Santos’ board of directors proved decisive in the decision to withdraw. No comments were made regarding a potential resumption of talks in the medium term.

A strategic LNG target in the region

With operations in Australia, Papua New Guinea, Timor-Leste and the United States, Santos Limited is a strategic LNG supplier for the Asian market. The company stated in June that its board of directors intended to recommend the offer to shareholders if final terms were agreed upon. The proposed merger would have been one of the largest consolidation deals in the sector in 2025.

Pressure on Adnoc’s international ambitions

The withdrawal comes as Adnoc expands its presence on the international stage. The United Arab Emirates company is seeking to grow beyond its traditional borders and secure strategic gas assets. This disengagement may prompt a shift towards alternative targets in the Asia-Pacific region, where competition over LNG resources remains strong.

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