Santos has extended its exclusivity period with the XRG Consortium as discussions continue over a proposed $18.7bn (A$28.74bn) acquisition.  

In a statement, the Australian gas company said the consortium, led by XRG, a subsidiary of Abu Dhabi National Oil Company, along with Abu Dhabi Development Holding Company and Carlyle, has nearly completed due diligence under the process and exclusivity deed signed on 27 June 2025. 

The XRG Consortium has not identified any issues that would cause it to withdraw its non-binding indicative proposal, Santos said.  

It has reaffirmed its commitment to completing due diligence promptly and negotiating a binding agreement.  

Consequently, the consortium requested a two-week extension to the due diligence and exclusivity period. 

Santos has agreed to extend the period until 22 August 2025 to allow the consortium to finalise its review and advance a scheme implementation agreement.  

Exclusivity restrictions outlined in Santos’ 27 June announcement will remain in place during the extension. 

The fiduciary exception, permitting Santos to consider potentially superior proposals from competing bidders, has been in effect since 25 July and will continue throughout the extended period.  

Santos operates across Australia, Papua New Guinea, Timor-Leste and the US. 

The company’s structure includes three regional business units focused on implementing corporate strategy and a midstream energy solutions business unit.  

Santos' portfolio includes liquefied natural gas plants near prolific gas resources and diverse integrated oil and gas production assets. 

In the second quarter of 2025, the company’s free cash flow from operations was approximately A$620m.  

Production reached 22.2 million barrels of oil equivalent (mboe), a 1% increase on the previous quarter, while sales volumes climbed 3% to 23.9mboe. 

In the first half, the company narrowed its unit production cost guidance to between A$7 and A$7.4 per barrel of oil equivalent.  

It also remains on track to achieve structural cost savings of A$150m annually over the next 18 months.