KNOC to Acquire 29% Stake in Otway Basin Permits, COPA Retains 51%
Korea National Oil Corporation is set to acquire a 29% stake in the Otway Basin joint venture with 3D Energi and ConocoPhillips, strengthening the exploration push for East Coast Australia’s gas supply.
- KNOC to acquire 29% interest in Otway Basin permits VIC/P79 and T/49P
- ConocoPhillips reduces stake to 51% but retains operatorship
- 3D Energi maintains 20% interest with COPA carrying up to US$65 million drilling costs
- Joint venture exploration program bolstered by KNOC’s investment and expertise
- Entry subject to Foreign Investment Review Board and regulatory approvals
Strategic Partnership Expands Otway Basin Ambitions
3D Energi Limited has announced a significant development in its Otway Basin exploration efforts with the Korea National Oil Corporation (KNOC) joining the joint venture alongside ConocoPhillips Australia (COPA). KNOC is set to acquire a 29% interest in the VIC/P79 and T/49P exploration permits, pending regulatory approvals, while COPA will reduce its stake to 51% but remain the operator. 3D Energi retains a 20% interest, maintaining its foothold in this promising gas exploration region.
This partnership marks a notable vote of confidence in the Otway Basin’s potential, as KNOC brings not only capital but also global oil and gas expertise to the table. The collaboration is expected to enhance the technical and financial resources available to the joint venture, potentially accelerating exploration activities and increasing the chances of discovering commercially viable gas reserves.
Financial and Operational Implications
Under the terms of the farm-down agreement, COPA will carry up to US$65 million in gross drilling costs for the two wells planned in the permits. This financial arrangement alleviates some of the capital burden on 3D Energi, allowing the smaller partner to focus on its strategic role while leveraging the strengths of its larger partners.
The entry of KNOC is subject to approval by the Foreign Investment Review Board (FIRB) and other regulatory bodies, a standard but critical step that introduces some uncertainty regarding timing. However, the announcement signals strong momentum and optimism about the joint venture’s prospects.
Looking Ahead: East Coast Gas Supply and Market Impact
East Coast Australia faces ongoing challenges in securing reliable domestic gas supplies, and the Otway Basin joint venture could play a pivotal role in addressing this demand. With KNOC’s involvement, the joint venture gains a strategic partner with a global footprint, potentially opening doors to further investment and technical collaboration.
3D Energi’s Executive Chairman Noel Newell expressed enthusiasm about the partnership, highlighting the exceptional prospectivity of the permits and the commercial opportunity ahead. As the joint venture moves forward, market watchers will be keen to see how this expanded partnership influences exploration outcomes and timelines.
Bottom Line?
KNOC’s entry reshapes the Otway Basin JV, setting the stage for intensified exploration and potential gas discoveries.
Questions in the middle?
- When will regulatory approvals for KNOC’s entry be finalized?
- How will KNOC’s expertise influence the joint venture’s exploration strategy?
- What impact will this partnership have on 3D Energi’s share value and funding capacity?
