Earlier this month Oil Search responded that while it recognized the rationale for the proposal, the offer did not provide appropriate value for its shareholders or a basis for progressing discussions.
Santos claims that the combination would create an unrivalled regional force, with a diverse portfolio of long-life assets across Australia and Papua New Guinea (including Oil Search’s exploration interests offshore PNG).
It would also support the development of key projects such as Papua LNG, helping the local economy.
Santos has now put forward the prospect of a merger in which ownership of the merged entity is based on relative contribution and value.
Citigroup and JB North & Co are acting as financial advisers and Herbert Smith Freehills and Dentons as legal advisers to Santos.