Australia's 3D Energi said on Wednesday it received a buyout notice from the Australian unit of ConocoPhillips to acquire its participating interest in the VIC/P79 exploration permit, offshore Otway Basin, for fair market value.
The notice follows earlier default notices issued under the joint operating agreement related to the Otway Phase 1 drilling program, in which 3D Energi holds a 20 per cent stake.
ConocoPhillips Australia, the permit operator, holds a 51 per cent stake, while the Korea National Oil Corporation holds 29 per cent.
Under the agreement, the parties will seek to agree on a fair market value for the stake, failing which an expert valuation will be obtained.
Once the value is determined, ConocoPhillips' Australian unit may exercise its buy-out right within 30 days, 3D Energy said.
If the buy-out option is not exercised within that period, ConocoPhillips Australia and Korea National Oil Corporation may pursue other remedies available under the agreement, including a potential dilution of 3D Energi's participating interest, it said.
3D Energi added that it is continuing to obtain advice on the validity of the default and buy-out notices.
(Reporting by Roshan Thomas in Bengaluru; editing by Rashmi Aich)
