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.
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.
Alternatively, if the buy-out is not completed, ConocoPhillips Australia and Korea National Oil Corporation may pursue other actions, potentially including diluting 3D Energi's interest. 3D Energi is actively seeking legal counsel regarding the validity of the issued default and buy-out notices.
