Adnoc seeks to raise $10bn for Santos takeover
9 September 2025
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Abu Dhabi National Oil Company (Adnoc Group) is reportedly looking to raise more than $10bn from local and international banks, as well as major financial institutions, to fund its planned acquisition of Australian energy company Santos.
JPMorgan Chase & Co, the financial adviser to an Adnoc-led consortium that seeks to acquire Santos, is leading the financing round, Bloomberg reported.
Adnoc’s overseas investment vehicle, XRG, is leading the consortium, which also includes Abu Dhabi Development Holding Company (ADQ) and US-based investment firm Carlyle. The consortium made an $18.7bn all-cash offer in mid-June for the full acquisition of Santos.
Negotiations between the XRG-led consortium and Santos are progressing. The parties aim to sign a definitive agreement before the end of the exclusivity period on 19 September, which extends the initial due diligence period that ended in August.
The consortium’s mid-June bid valued Santos’ shares at $5.761 each, representing a significant premium over trading prices, which have since declined. Santos’ board previously stated it intends to support the proposal – provided there is no superior competing offer – and agreed to grant the consortium access to conduct due diligence under a confidentiality agreement.
Santos is a major energy company primarily operating in the gas production, liquefied natural gas (LNG), and carbon capture and storage (CCS) sectors, with assets in Australia, Papua New Guinea and the US.
Santos operates two LNG facilities in Australia: Darwin LNG and Gladstone LNG. It is also the majority shareholder in the PNG LNG project in Papua New Guinea, following its acquisition of Oil Search in 2021.
PNG LNG is considered one of the lowest-cost LNG projects globally. The company also recently received approval for another $2.3bn gas development – an onshore coal seam project that will supply the local market.
Santos and Adnoc already have ties, having signed an agreement in late 2023 to advance collaboration in CCS.
READ THE SEPTEMBER 2025 MEED BUSINESS REVIEW – click here to view PDF
Doha’s Olympic bid; Kuwait’s progress on crucial reforms reinforces sentiment; Downstream petrochemicals investments take centre stage
Distributed to senior decision-makers in the region and around the world, the September 2025 edition of MEED Business Review includes:
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> OLYMPICS: Qatar banks on infrastructure for Olympic bid
> QATAR TOURISM: Olympics bid aims to extend tourism gains
> CURRENT AFFAIRS: Syria charts post-war reconstruction course
> INDUSTRY REPORT: Regional chemicals spending set to soar
> DOWNSTREAM: Adnoc set to become a chemicals major
> SAUDI STADIUMS: Stadiums become main event for Saudi construction
> CONSTRUCTION: Middle East to be a growth leader for global construction
> LEADERSHIP: Dubai’s sea-air logistics model powers resilient trade
> KUWAIT MARKET FOCUS: Kuwait’s political hiatus brings opportunity
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The project, known as Olefins IV, is estimated to be worth $500m, according to MEED Projects.
The latest approval from KPC for the project comes after the availability of the necessary feedstock for the project was confirmed, according to KPC’s most recent annual report.
In July, MEED reported that feasibility studies for the project had been completed, but PIC was waiting for confirmation of the volumes of gas that would be available for the project as feedstock.
The Olefins IV project is expected to use natural gas produced by upstream operator Kuwait Oil Company (KOC), another KPC subsidiary.
There is currently uncertainty at PIC about when the front-end engineering and design work for the project will commence, according to industry sources.
As part of PIC’s long-term strategy, which looks ahead to 2040, it is aiming to scale up its portfolio and leverage partnerships to add value.
The company has stated that it aims to expand its core portfolio both within and outside Kuwait through greenfield and brownfield projects, with the goal of achieving a leading global position.
It has also said that it wants to expand into downstream derivatives linked to its base petrochemicals portfolio.
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READ THE OCTOBER 2025 MEED BUSINESS REVIEW – click here to view PDFPrivate sector takes on expanded role; Riyadh shifts towards strategic expenditure; MEED’s 2025 power developer ranking
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SWPC names preferred bidder for Jizan sewage project
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Saudi Water Partnership Company (SWPC) has announced its preferred bidder for the Jizan Cluster Small Sewage Treatment Plants (SSTP) and Collection Network (CN) project.
AlKhorayef Water & Power Technologies, part of Saudi Arabia-based AlKhoraef Group, is the favourite to win the contract to develop the project under a 25-year contract.
The $150m scheme involves the construction of 12 sewage treatment plants across the Jizan region in the southwestern part of the kingdom. The plants will have a combined treatment capacity of 74,700 cubic metres a day (cm/d), with individual plant capacities ranging between 1,800 and 15,000 cm/d.
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Three consortiums have submitted bids for a contract to develop Baghdad International airport on a public-private partnership (PPP) basis.
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Iraq’s Ministry of Transport and General Company for Airport & Air Navigation Services released the tender in July this year.
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According to a statement posted on its website, the Ministry of Transport says the initial capacity of the airport is expected to be around 9 million passengers, which will be gradually increased to 15 million passengers.
The International Finance Corporation (IFC), a member of the World Bank Group, is the project’s lead transaction adviser.
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The meeting took place in Baghdad and was also attended by officials from IFC.
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Qatari-led team signs Syria airport consultancy agreements
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A consortium led by Qatar’s UCC Holding has signed five consultancy and design agreements for the redevelopment of Damascus International airport in Syria.
UCC Holding said in a statement that the agreements were signed with the following companies:
> Hesco Hammada Engineering Services: Responsible for the design and redevelopment of Terminals 1 and 2, the design of the new Terminal 3 and all associated facilities.
> H’Collective: Responsible for the architectural and interior design of the new Damascus Airport hotel.
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