By David Winning

Australian oil and gas company Oil Search Ltd.'s acting CEO Peter Fredricson said Santos Ltd. likes the proposed Pikka oil development in Alaska as the companies continue to advance their proposed merger.

Oil Search had been seeking to sell a stake of around 15% in Pikka to reduce its funding needs when its peer Santos approached the company about a merger, which will create one of the world's 20 largest oil and gas companies by market value.

"As a merged entity there is less requirement for such a selldown," Mr. Fredricson told Dow Jones Newswires Thursday.

He said the Pikka sales process has been on the backburner since merger talks with Santos began. Oil Search's shareholders are due to vote on the merger on Dec. 7.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

11-11-21 0050ET