Australian petroleum exploration and production company, Woodside Energy Group Ltd, has confirmed that it is in discussions regarding a potential merger with Santos Ltd.

Both companies are currently in preliminary talks to form a $80 billion global oil and gas giant — which would be the largest national business deal in many years.

As of right now, the discussions remain confidential and incomplete and Woodside has released a statement stating that there is no certainty that the merger talks will lead to an actual transaction.

The statement reads: “As a global energy company, Woodside continuously assesses a range of opportunities to create an deliver value for shareholders.”

Woodside said the company will continue to update the market in accordance with its continuous disclosure obligations.

Santos is in the process of assessing a range of alternative structural options with a view to unlocking value as referred to on Santos’ investor day on 22 November 2023.

Woodside’s market capitalisation currently stands at $56.91 billion, while Santos is priced at $22.1 billion.