Santos has reportedly received a binding bid worth A$1.5bn ($1.1bn) from Quadrant Energy for Australian oil and gas fields the firms jointly own.
The latest development follows the company’s rejection of $5.2bn ($7.2bn) takeover offer from Scepter Partners last week.
Bloomberg reported that the company is considering the latest offer for its stakes in the Australian fields as part of a broader review of its assets.
In August, Santos announced that it would conduct a thorough strategic review of all options to restore and maximise shareholder value.
The company said it is considering all proposals, which deliver appropriate value and certainty for shareholders.
Meanwhile, Japanese trading house Marubeni is currently in negotiation to purchase 3.6% of Exxon Mobil’s Papua New Guinea liquefied natural gas plant from Santos for more than A$1bn, the sources added.
The company currently owns 13.5% of the $19bn PNG LNG plant, while Exxon Mobil has a stake of 33.2% and Oil Search 29%.
Santos is also in talks with several parties about different sets of assets.
However, the company has not made a final decision on the parts of its portfolio to sell, or whether the firm requires raising equity in addition to the divestments, Bloomberg reported.
The Santos board previously rejected Scepter’s proposal, claiming that it is considered opportunistic in nature and does not reflect the fair underlying asset value of the company.