Losing Santos would be a huge psychological blow to the state

If Santos were to merge with Woodside, in all likelihood the head office would be lost to the state. That would be a disaster.

Santos’s Moomba gas plant. Picture: Kelly Barnes

The loss of Santos as a corporate entity in South Australia – were a merger with Woodside Energy to proceed – would be a huge blow both psychologically and economically.

Perth-based Woodside is by far the larger entity, and with both companies having assets on the west coast of Australia, it would make sense, were they to merger, for the company’s head office to be based there.

This wouldn’t necessarily mean a complete extraction of jobs from the Adelaide CBD, but it would certainly gut the head office of its key decision makers.

Perhaps even more damaging, it would bring to an end a story of South Australian entrepreneurialism which stretches back to the 1950s.

The company formerly known as South Australia Northern Territory Oil Search (Santos), discovered gas in the Cooper Basin in the early 1960s, and oil a few years later.

It has supplied the gas which powers our industry, and our cooktops, for decades, and provided thousands of jobs, and huge dividend flows over the years to South Australian families.

It was even deemed so important that a shareholder cap was put in place in the late 1970s so notorious Australian businessman Alan Bond couldn’t swoop in and take control.

These days its importance as an employer, both directly and through the many services it procures can’t be overstated, not to mention its contribution to the state through the sponsorship of events such as the Tour Down Under.

South Australians should watch these merger talks with a keen eye, and fight tooth and nail to ensure Santos stays here, in whatever form it takes next.

The alternative would be a sad end to a mighty, proud company.