Santos bids A$606m for gas producer

SYDNEY - Santos, Australia's biggest natural gas producer, offered to buy Queensland Gas for A$606 million ($681 million) in cash to expand production in northeastern Australia.

Santos offered A$1.26 a share for the Brisbane-based producer of gas from coal seams, the Adelaide-based company said. Santos already owns 3.9 per cent of Queensland Gas, including 1.9 million shares bought on the market on Wednesday.

Last month Santos was outbid by Beach Petroleum for Delhi Petroleum, a partner in the Cooper Basin venture.

- BLOOMBERG