The new business will be called ConocoPhillips and as a result of the merger, will become the third largest oil and gas producer in the US.

Though the deal has yet to gain the seal of approval from regulators, the two companies said in a joint media statement that the merger will bring improved efficiency and better opportunities for growth.

The new company will have its headquarters in Houston, Texas and Phillips' chairman, Mr James Mulva, will become the new company's president and CEO. Phillips is well known to American motorists because of its distinctive 'Phillips 66' logo. However, to Australians, the company is more known for its role in trying to develop the Timor Sea gas fields.