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Sky News Business Editor Ross Greenwood says the $21 billion merger of Santos and Oil Search is “quite similar” to the recent deal between BHP and Woodside.

“They’re trying to bulk themselves up,” Mr Greenwood told Sky News host Chris Kenny.

“Santos, very big in Australia, Oil Search also pretty big in Australia but especially in Papua New Guinea with LNG projects.

“But, if completed it will again be a top 20 oil and gas producer in the world.

“They also claim it will give them better to scale to embark on other areas, such as producing green hydrogen or ammonia or whatever it might be into the future that many of these energy companies morph into.”