Santos-Oil Search merger faces delay

The proposed A$21bn ($15bn) Oil Search-Santos merger has been delayed slightly due to the postponement of the first court date in Papua New Guinea, Oil Search said on November 10.

This is the second time that the court date has been rescheduled. Oil Search had last month said that the original court date was October 27 which was rescheduled to November 10. This has now been postponed to November 11. Oil Search's shareholders are to vote on the merger on November 29. 

"The Oil Search board will update shareholders and the market when orders regarding the meeting of Oil Search shareholders have been made and the implementation timetable has been approved by the court," the company said.

Santos and Oil Search finalised the merger deal in September this year. After the completion of the deal, Oil Search shareholders will own approximately 38.5% of the merged entity and Santos shareholders will own about 61.5%. Santos CEO Kevin Gallagher last month said that the merger is on track for completion by year-end.

The combined entity will be among the world’s top 20 oil and gas companies and have assets across Australia, Timor-Leste, PNG and North America.