News: STO UPDATE 1-PNG court permits Oil Search investors to vote on Santos deal

(Adds details on deal and background)

Nov 11 (Reuters) - A Papua New Guinea court has allowed Oil Search Ltd (OSH) shareholders to vote on its merger with Australia's Santos Ltd (STO) , both companies said on Thursday, while also winning the backing of an independent advisory firm for the deal.

The scheme meeting will take place on Dec. 7, as per the orders from the National Court of Papua New Guinea.

The PNG government had previously raised concerns about the A$8 billion ($5.90 billion) acquisition by Santos, saying it would harm national interests as it could result in a foreign firm holding too much of domestic oil and gas resources.

Independent advisory firm Grant Samuel said on Thursday the merger was in the best interest of PNG-focussed Oil Search's shareholders as it would ease financial constraints faced by the company.

A merged group would have the capacity to develop Oil Search's $3 billion Pikka project in Alaska, Grant Samuel said.

If a deal comes through, Santos will become the largest shareholder in the country's biggest resource project, the PNG LNG project, operated by U.S. oil company Exxon Mobil Corp XOM.N .

($1 = 1.3563 Australian dollars)