Abu Dhabi National Oil Company's international investment arm XRG said on Wednesday that an investor group it was leading had withdrawn an indicative $18.7 billion offer to buy Australian gas producer Santos.

The consortium, led by XRG alongside Abu Dhabi sovereign fund ADQ and private equity firm Carlyle, will not make a binding offer for Santos, XRG said in a statement, capping a months-long takeover saga.

Santos did not immediately respond to a request for comment.

(Reporting by Dubai newsroom and Scott Murdoch in Sydney. Editing by Joe Bavier and Mark Potter)