MELBOURNE, Aug 26 (Reuters) - Santos Ltd has agreed to pause some drilling on the Barossa gas project in waters off northern Australia pending a court decision on a challenge by a group of Indigenous land owners seeking to stop the $3.5 billion project.

"Current drilling activities on the Barossa project are continuing in accordance with the undertaking with the Court," a Santos spokesperson said.

Hearings on the case concluded on Friday at the Federal Court in Darwin, with a decision expected in a few weeks. (Reporting by Sonali Paul; Editing by Muralikumar Anantharaman)