Santos Limited (ASX:STO) made it clear it was getting on with business after its talks with Woodside Energy Group Ltd. (ASX:WDS) over a $24 billion-plus buyout collapsed in recent weeks, with its focus squarely on operating its assets. But some wonder if it's not the end of merger and acquisition activity for the listed gas producer. It may not be a buyout of the entire company, despite suggestions last year that bankers were testing the interest of global industry players; a buyer may be stalking some of the parts.

One asset in focus is the Santos Gladstone LNG. Sources believe ConocoPhillips (NYSE:COP) has had its eye on GLNG in recent months. The US multinational owns 47.5% in the nearby APLNG after buying an additional 10% from Origin Energy in 2022.

Origin Energy now has 27.5% and Sinopec the remainder. The understanding is that ConocoPhillips had been waiting in the wings to do a possible deal on APLNG after EIG and Brookfield walked away from their $16 billion bid for Origin. EIG was going to buy Origin's APLNG stake and Brookfield the energy markets business, but Origin's largest shareholder was not in favour of the transaction and voted against it.

Apparently, ConocoPhillips had been carrying out a lot of work on the merits of bringing APLNG and GLNG together. Yet a source close to Santos said it was not for sale, and others say it is the jewel in the crown for the domestic portfolio. Sources say ConocoPhillips has a close relationship with Morgan Stanley, which has recently done due diligence on Santos on behalf of its client Woodside, so it would be familiar with the inner workings of Santos.