Abu Dhabi National Oil Company, preparing an $18.7 billion bid for Santos , is likely to face close scrutiny from Australian regulators worried about local gas supply, but could win them over with pledges to speed up new projects,

Adelaide-based Santos said that XRG, comprised of the Abu Dhabi National Oil Company, Abu Dhabi Development Holding Company and US private equity fund Carlyle, had tabled an indicative cash offer of US$5.76 a share — equivalent to A$8.89 — which represented a 28 per cent premium to the company’s closing share price last week.

But the offer for the ASX’s second-largest oil and gas producer has been met with a lukewarm reception from investors, who say the price could be higher.