What is the reason for ConocoPhillips' buyout notice to 3D Energi?

The buyout notice was issued due to earlier default notices related to the Otway Phase 1 drilling program, where 3D Energi holds a 20% stake in the VIC/P79 exploration permit.

Who operates the VIC/P79 exploration permit?

ConocoPhillips Australia operates the VIC/P79 exploration permit.

What happens if ConocoPhillips Australia and 3D Energi cannot agree on the stake's value?

If the parties cannot agree on a fair market value, an expert valuation will be obtained to determine the stake's worth.

Home / Business and Economy / 3D Energi Faces Buyout Over Otway Permit

3D Energi Faces Buyout Over Otway Permit

18 Mar

•

Summary

ConocoPhillips issued buyout notice for 3D Energi's stake.
Dispute stems from default notices on Otway Phase 1 drilling.
3D Energi is evaluating the validity of the notices.

3D Energi Faces Buyout Over Otway Permit

ConocoPhillips' Australian subsidiary has initiated a buyout process for 3D Energi's share in the VIC/P79 exploration permit. This development concerns the Otway Basin, offshore Australia, where 3D Energi holds a 20% interest.

The buyout notice follows previous default notices issued under the joint operating agreement for the Otway Phase 1 drilling program. ConocoPhillips Australia, the operator, holds a 51% stake, while Korea National Oil Corporation holds 29%.

Parties will now negotiate a fair market value for the stake. If an agreement is not reached, an expert valuation will determine the price. ConocoPhillips Australia has a 30-day window to exercise its buy-out right after the valuation.