Gas and oil giant Santos will pay more than $2 billion to acquire ConocoPhillips’ northern Australia business.

The package includes operating interests in Darwin LNG, Bayu-Undan, Barossa and Poseidon for $US1.39 billion ($AU2 billion).

There is also a $US75 million ($AU111 million) contingent payment subject to a final investment decision on Barossa – a gas and light condensate field located about 300 km north of Darwin in East Timor waters.

Santos managing director and chief executive officer Kevin Gallagher said Santos had a long-established relationship with ConocoPhillips, which ha operated its northern Australia natural gas assets for many years.

“Santos was a founding partner with ConocoPhillips in Darwin LNG, which has been operating since 2006. The acquisition of these assets fully aligns with Santos’ growth strategy to build on existing infrastructure positions while advancing our aim to be a leading regional LNG supplier,” Mr Gallagher said.

“This acquisition delivers operatorship and control of strategic LNG infrastructure at Darwin, with approvals in place supporting expansion to 10 mtpa, and the low-cost, long-life Barossa gas project.”