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,

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.

Santos’s buyout by the Abu Dhabi National Oil Company and The Carlyle Group for almost $30bn is likely to add share price firepower to its listed rivals, market experts say.