‘Thumbs up’: Santos to list on Papua New Guinea’s stock exchange


Santos is listing on Papua New Guinea’s stock exchange, the PNGX, after its merger with Oil Search received the necessary final approvals. It will immediately become the exchange’s largest listing, providing PNG’s capital markets with a timely boost.

Hides well pad, PNG LNG project. Credit: Santos

Following Papua New Guinea’s National Court’s approval of the scheme of arrangement for Santos’ merger with Oil Search yesterday, Santos has successfully applied to list as an ‘Exempt Foreign Company’ on PNG’s stock exchange, the PNGX.

‘We’ve got one of the largest oil companies in Australia giving the exchange, the regulatory regime, the market and the economy the thumbs up.’

Its application was approved by PNGX’s board today. Trading in Santos shares (listing code: STO) on PNGX will therefore commence on Monday 13 December, initially on a ‘deferred settlement’ basis until formal trading commences on 20 December.

PNGX’s David Lawrence

‘It’s an exciting development for the PNG market,’ PNGX’s Chairman, David Lawrence, tells Business Advantage PNG, who points out that Oil Search was listed on the exchange’s first day of trading back in 2001.

‘It is the end of an era when we lose Oil Search, but also the start of a new one.

‘We hope Santos coming onto the market is a sign of its commitment to the country and is the catalyst for other offshore companies joining the market and giving local investors the opportunity to invest in the country.’

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Vote of confidence

The listing provides a timely filip for PNG’s stock exchange, and its economy more generally.

‘It’s a fantastic vote of confidence in Oil Search’s shareholder base in PNG, in the exchange, and in the capital markets in PNG,’ Lars Mortensen, Managing Director of JMP Securities (one of PNG’s two licensed stock brokers) tells Business Advantage PNG.

JMP Securities’ Lars Mortensen

‘We’ve got one of the largest oil companies in Australia giving the exchange, the regulatory regime, the market and the economy the thumbs up.’

The move also ensures that the funds invested in Oil Search in PNG stay in PNG.

‘It’s important for the continuity of trading activities for a large number of market participants. That will keep that capital invested in the market,’ Mortensen explains.

There may be longer term benefits as well.

‘Potentially, one of the consequences may be that, as PNG companies decide to go to the market with IPOs, international investors may find the [PNG] market worth looking at, on the basis that large international companies find it stacks up from a regulatory, compliance and transparency perspective.’

Scheme of arrangement

Under the scheme of arrangement approved by PNG’s National Court, Santos is acquiring acquire all of shares in Oil Search in return for the issue of new Santos shares to Oil Search shareholders.

‘Today therefore marks the last day of trading for Oil Search shares. ‘

Oil Search shareholders will receive 0.6275 new Santos shares for each existing Oil Search share they hold. Santos expects to issue a maximum of 1.3 billion shares under this arrangement, according to its Australian Securities Exchange filings.

Today therefore marks the last day of trading for Oil Search shares. The 92-year-old company will be formally de-listed from PNGX on 17 December.

‘In order to ensure an orderly market in Oil Search shares and to protect investors, PNGX requires the settlement of any Oil Search trades reported on PNGX on 10 December 2021 to be completed on or before the record date of the scheme on 14 December 2021 (T+2),’ said the PNGX in a statement.

‘Orders to buy or sell Oil Search shares should not be accepted and transacted on Friday 10 December unless the client agrees to ensure settlement no later than 10.00 am Tuesday 14 December.’


  1. Kundapen Talyaga says

    Can you help me sell my barrick gold corporation shares?

  2. Alphonse+Wapa says

    Santos is a questionable company,how did PM and ICCC gave approval for a PNG icon to be taken over by a ghost company. Who doesn’t do any exploration or any other reinvestment activities in PNG’s oil and gas industry.Its really a bad decision that will have negative implications.

  3. Peter forova says

    How do i buy new share stock

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