Abu Dhabi’s growing global energy ambitions see it pivot from a domestic focus to now aiming to compete with the likes of Shell and ExxonMobil in terms of production, following the USD 19 bn takeover offer for Australian gas player Santos, Bernstein analysts told Bloomberg. The transaction — Adnoc’s biggest energy acquisition to date — would give it access to Santos’ 7.5 mn tons-per-year of LNG capacity and direct entry into fast-growing Asian markets as it looks to become a major global LNG player.

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BUT- The takeover is likely to face regulatory scrutiny, with Australia’s Foreign Investment Review board wary of domestic gas supplies falling under foreign ownership, Reuters reports. Promises to utilize Santos’ underdeveloped gas projects along with an allcash offer could help appease detractors, UBS analyst Tom Allen noted. Analysts also said the UAE-Australia trade pact signed last year could help strengthen the bid’s appeal.

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