Australian energy firms Santos and Woodside Energy on Wednesday abandoned talks to create an oil and gas firm worth more than US$50 billion.
The companies -under pressure as the world eyes a shift to renewable energy sources- had held exploratory talks to create what would be one of the world’s largest natural gas exporters.
However, Woodside chief executive Meg O’Neill indicated that talks had not worked out and had now “ceased”.
“While the discussions with Santos did not result in a transaction, Woodside considers that the global LNG sector provides significant potential for value creation.”
Both companies face mounting hurdles for new projects as regulators factor in climate impacts, and investors grow cagey about fossil fuels.
Australia is one of the world’s largest producers and exporters of natural gas.
Santos shares were down more than eight percent on the news, while Woodside’s rose slightly.