Bloomberg/Contributor | Bloomberg | Getty Images
Santos and Woodside Energy, two of Australia’s largest oil and gas producers, have opened talks to discuss a potential merger in what could create an 80 billion Australian dollar ($52 billion) oil and gas behemoth.
“Concurrently, Santos is assessing a range of alternative structural options with a view to unlocking value,” according to a statement issued by Santos on Thursday.
Shares of Santos spiked 11% in early trade on Friday while Woodside slipped 0.7%.
Santos, which has a market capitalization of around AU$22 billion, said during an investor briefing last month that it was working on options to lift its value. Woodside boasts a market capitalization of around AU$57 billion.
In June last year, Woodside merged with BHP Group’s oil and gas arm. Santos in 2021 acquired energy exploration company Oil Search, but a multibillion-dollar gas drilling project has been derailed by a court challenge.
Santos shares rose to a five week high