The Adelaide-based major has long complained that the 28-year-old cap limits the growth of the company and its share price.

In a statement Santos said it had studied the review’s six terms of reference, and “strongly endorses full removal of the 15% shareholding cap”.

The cap was introduced in 1979 to prevent Western Australian businessman Alan Bond from taking over the company and putting South Australian gas supplies at risk.

At that time, the Cooper Basin, which is 66.6%-owned by Santos, was SA’s only gas source.

But integration into the southeastern Australian network now means the state receives supplies from Queensland and Victoria.

“The original intent of the shareholding cap, introduced 28 years ago, is no longer applicable,” Santos said in the statement.

In addressing the terms, Santos said removing the cap would not pose any significant risks to the state’s economy and that there was considerable upside.

“There would be no adverse implications for regional development; and South Australia will benefit directly if Santos can achieve its full growth potential,” it said.

Managing director John Ellice-Flint said the company’s board and management “strongly believe” the cap is stopping Santos from realising its full growth potential.

“Removal would deliver significant benefits to the company and by extension the South Australian economy,” he said.

The SA Government has indicated it expected to complete the review by July 31.

When the review was announced on May 1, several analysts speculated that removing the cap could make Santos a merger or takeover target.