In his address to Oil Search’s board of directors, Santos said the combination of their long-term asset portfolios would create an “unmatched regional champion of size and scale” with a stronger balance sheet and less risk then. that industry is under pressure on its contribution to global warming. .
Oil Search, which declined the offer earlier this month, is facing pressure from some investors to reconnect with Santos over an offer.
LNG is one of the country’s main export products, accounting for $ 32 billion in export earnings in the past fiscal year. The federal government expects this amount to increase sharply over the next 12 months to $ 49 billion.
However, oil and gas companies are also facing increasing pressure on climate change and the prospect of demand for their raw materials falling faster and more sharply in the future than expected. As natural gas helps cut emissions in parts of the world by replacing electricity with coal, the International Energy Agency released a landmark report in May that warned investors should avoid funding new deposits of oil and gas for the world to achieve the Paris agreement ambitious goal of limiting the rise in global temperature to 1.5 degrees.