Santos has welcomed a favourable ruling from the Queensland Supreme Court in its legal proceedings against Fluor Australia over the Gladstone LNG project.

The court has ordered Fluor to pay approximately A$692m to Santos and its co-venturers, with additional amounts to be determined.

The dispute stemmed from a 2011 engineering and construction contract for the Gladstone LNG project's production facilities.

Santos contended that Fluor unjustly claimed and received payments under the contract and sought to recoup these amounts, including liquidated damages for project delays.

Furthermore, Santos aimed to enforce a parent company guarantee from Fluor Corporation.

On 14 July 2023, three referees, appointed by the court to review the case, submitted their final report, supporting Santos' position on cost recovery.

The court has now largely upheld the referees' conclusions, confirming Fluor's obligation to pay the substantial sum to Santos and its partners.

The final amount, which will include interest and legal costs, is expected to be confirmed in the upcoming weeks.

In related news, Santos recently extended its exclusivity period with the XRG Consortium amid ongoing discussions regarding a proposed $18.7bn acquisition.

The consortium, led by XRG, a subsidiary of Abu Dhabi National Oil Company, along with Abu Dhabi Development Holding Company and Carlyle, is nearing the completion of its due diligence, as per the process and exclusivity deed signed on 27 June 2025.

According to Santos, the XRG Consortium has not encountered any issues that would lead it to retract its non-binding indicative proposal.