An Abu Dhabi company may acquire Santos, the Australian oil giant operating on Alaska’s North Slope, in a proposed $36 billion deal. Santo Ltd. confirmed that XRG PJSC, an Abu Dhabi National Oil Co. subsidiary, submitted a formal buyout offer this month.
Company leaders emphasized that negotiations are ongoing, and terms have not yet been finalized or disclosed publicly. The deal would include Santos’s debt and shift control over Alaska’s Pikka oil prospects to the UAE-based consortium.
If developed, Pikka could produce 80,000 barrels of oil daily and hold an estimated 400 million barrels of recoverable oil. Santos currently operates the Pikka project with a 51% ownership stake, while Spain’s Reposal owns the remaining 49%.
The company approved full scene development in 2022, budgeting roughly $2.6 billion in capital costs. Located on the western North Slope, Pikka lies near the ConocoPhillips Willow project, both linked to the rich Nanushuk geologic formation.
These fields are expected to drive new oil output from Alaska in the coming decades. In addition, Pikka Santos also owns 25% of the Sockeye prospect on the eastern North Slope, where APA Corp leads development with a 50% stake.
The Sockeye discovery was publicly announced earlier this year. If XRG PJSC finalizes the acquisition, Alaska regulators say they will closely monitor the deal’s impact on local energy projects. John Boyle Alaska Natural Resources Commission welcomed the potential investment, calling new industry players a positive development.
This idea has stirred political concerns in Australia. Officials and labor unions have raised issues related to foreign control over domestic energy resources. Regional lawmakers have even proposed conditions for the transaction, hoping to preserve national interests as negotiations unfold.
