Australia-based Santos has granted exclusive due diligence access for six weeks to the consortium led by Abu Dhabi National Oil Company (ADNOC), which offered $18.7bn for the Australian oil and gas producer.

Santos entered a process and exclusivity deed with the XRG Consortium, led by ADNOC subsidiary XRG.

The non-binding indicative proposal suggests an acquisition of all issued shares of Santos at a cash price of $5.76 (A$8.89) per share.

The process deed outlines the terms under which the consortium will conduct due diligence and simultaneously negotiate a binding scheme implementation deed to finalise the acquisition.

The consortium, which includes Abu Dhabi Development Holding Company and Carlyle, has been granted a six-week exclusive period to access Santos' due diligence data starting from today.

During the exclusivity period, Santos is bound by standard non-disclosure obligations, including "no shop", "no talk", "no due diligence", and "notification" requirements. However, a fiduciary exception allows Santos' Board to entertain potentially superior offers from other interested parties, beginning four weeks from the date of the data room opening.

The confidentiality terms agreed upon between Santos and the XRG consortium are detailed in a separate agreement, ensuring the protection of sensitive information throughout the purchase process.

Santos has operations across Australia, Papua New Guinea, Timor-Leste and the US. The company’s operating structure consists of three regional business units focused on implementing corporate strategy and a midstream energy solutions business unit.

The company has a portfolio of liquefied natural gas plants adjacent to prolific gas resources and diverse integrated oil and gas production assets.