Oil and gas firm Santos announced a $US2.15 billion ($2.9b) deal to buy privately held Quadrant Energy on Wednesday, bagging access to what may be the biggest oil field find off Western Australia in over two decades.
Santos said the deal would be funded by cash and will not affect its dividend policy.
The purchase will boost Santos' annual production by 32 percent, it said.
Santos managing director Kevin Gallagher said Santos had a long-established relationship with Quadrant, which has run its WA natural gas assets for some time.
"This acquisition delivers increased ownership and operatorship of a high quality portfolio of low cost, long-life conventional Western Australian natural gas assets which are well known to Santos, and importantly significantly strengthens Santos' offshore operating capability," Mr Gallagher said.
"It is materially value accretive for Santos shareholders and advances Santos' aim to be Australia's leading domestic natural gas supplier."
Earlier this month, Quadrant Energy and Carnarvon Petroleum found an oil field off Western Australia which led to Carnarvon shares rocketing to a nine-year high after the announcement.
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