Australia energy giants Woodside and Santos in talks to create  billion gas powerhouse

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Shares of Australia’s Santos jumped to a five-week excessive on Friday on information the corporate is in talks to merge with Woodside Energy.

Santos and Woodside Energy, two of Australia’s largest oil and gas producers, have opened talks to talk about a possible merger in what might create an 80 billion Australian greenback ($52 billion) oil and gas behemoth.

“Concurrently, Santos is assessing a variety of other structural choices with a view to unlocking worth,” in accordance to a statement issued by Santos on Thursday.

Shares of Santos spiked 11% in early commerce on Friday whereas Woodside slipped 0.7%.

Santos, which has a market capitalization of round AU$22 billion, mentioned during an investor briefing last month that it was engaged on choices to raise its worth. Woodside boasts a market capitalization of round AU$57 billion.

Discussions are nonetheless at an early stage — in statements to the press, each corporations emphasized there’s “no certainty” the discussions would lead to a deal.

In June final 12 months, Woodside merged with BHP Group’s oil and gas arm. Santos in 2021 acquired energy exploration firm Oil Search, however a multibillion-dollar gas drilling project has been derailed by a court docket problem.

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Santos shares rose to a 5 week excessive

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