Jim Chalmers faces ‘captain’s call’ over Abu Dhabi bid for...

Jim Chalmers faces ‘captain’s call’ over Abu Dhabi bid for Australian oil and gas giant Santos ASX:STO

The Guardian

The board of the Adelaide-headquartered oil and gas company has expressed support for the $30bn bid that, if successful, would place a series of strategic assets into foreign-owned hand.

Santos has a portfolio of overseas and domestic oil and gas assets that includes large operations in Western Australia and the Cooper basin, as well as critical energy infrastructure in the eastern states.

The proposal requires various regulatory approvals, and will be tested by the Foreign Investment Review Board (FIRB), which provides advice to the treasurer.

The takeover proposal marks the first major foreign investment test for the Labor government since re-election, and raises questions about whether such a deal would help or hinder Australia’s energy needs.

“I welcome people expressing their view, I am unable to because I may have to make a decision on this at some stage,” Chalmers told the ABC on Monday. “It would be a big decision. And I do intend to take the advice seriously and I don’t intend to pre-empt it.”

The Barossa gasfield is offshore from the Tiwi Islands, part of the Northern Territory

Santos wins final approval for Barossa gas project as environment advocates condemn ‘climate bomb’

Read more

Matthew Haupt, a lead portfolio manager at Wilson Asset Management, said the FIRB would focus on domestic gas supply and infrastructure security.

“Ultimately it can be a captain’s call from the treasurer,” Haupt said.

Analysts told Guardian Australia that the FIRB would also consider Australia’s robust trading relationship with the United Arab Emirates, which includes a bilateral free trade agreement, when assessing the deal.

But, the lack of an Australian partner in the consortium, such as a superannuation fund, would be a drawback.

The South Australian government has said it would deal itself into the approval process through its oversight of assets.

“There are levers available to the state government to ensure that the state has a say in this potential takeover, and our main objective will be to safeguard Santos jobs and retain its headquarters in SA,” said the energy minister, Tom Koutsantonis.

https://share.google/v9J2nQHAZ0PPKNAvG