Abu Dhabi National Oil Co (ADNOC) has responded to criticism from Beach Energy chairman Ryan Stokes, labelling his comments as “clearly opportunistic”. Stokes, a high-profile businessman, had criticised ADNOC’s $36 billion takeover bid for Santos, leading to increased tension between the parties involved. The disagreement comes as ADNOC, through its overseas investment arm XRG, seeks to acquire Santos, a significant player in the Australian energy market. Santos is an Australian energy company focused on exploration, development, production, and marketing of natural gas and crude oil. Beach Energy is an oil and gas exploration and production company with a focus on Australian operations.
A spokesman for the bidding consortium, led by XRG, defended the group’s commitment to “long-term, strategic investment in developing Australia’s gas resources”. The spokesman emphasised that the takeover would benefit customers, citing the consortium’s financial strength. ADNOC believes its investment will drive growth and help meet rising energy demands in the region, supporting the Australian economy through strategic capital deployment.
Stokes, who is also CEO of industrial conglomerate SGH, which holds a 30 per cent stake in Beach, raised concerns about the potential consequences of the takeover. Beach Energy is a crucial part of Santos’ gas supply from the Cooper Basin. Stokes likened ADNOC to a private equity buyer, suggesting the company might not be a long-term investor in Santos, which could negatively impact Australia’s energy security.
ADNOC refuted this comparison, asserting its commitment to the Australian market and its intention to bolster the country’s gas resources. The company maintains that strategic investors with substantial capital are essential to address the growing demand for energy and ensure a stable supply for domestic gas customers.
