Santos seeking up to A$3 billion for LNG project

Australian oil and gas producer Santos Ltd is raising up to A$3 billion ($2.3 billion) in a deeply discounted rights offer to reduce debt and help fund its portfolio of liquefied natural gas (LNG) projects.

Santos, the country's third-largest oil and gas producer, joins a rush of Australian companies that are seizing on a recent rally in shares to tap equity capital markets to overcome difficult credit markets.

The two-for-five rights offer at A$12.50 per share represents a 27 percent discount to its last traded price. It is the biggest share sale by an Australian company since National Australia Bank launched a similar sized offering in November.