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The two oil and gas companies had been working on an agreement on the terms since August.
The oil and gas company said better oil prices in the June half of the year led to earnings rebound.
Oil Search has approved a sweetened merger proposal from Santos that will place the energy giant among the top 20 oil and gas companies in the world.
Oil Search Ltd., which operates in Alaska and Papua New Guinea, has made a takeover bid from the independent Australian Santos Ltd.
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Just a day after surveying investors about the approaches, Oil Search announces that it received an offer a month ago.
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