KUALA LUMPUR: Hibiscus Petroleum Bhd
says its associate company in Australia, 3D Energi Ltd (TDO), has entered into a right of first refusal deed (ROFR) regarding the sale of its share of future gas production with a ConocoPhillips Australia (Copa) group company.
In a filing with Bursa Malaysia, Hibiscus Petroleum said that under the deed, Copa has an opportunity to acquire TDO’s share of joint venture (JV) production; however, the ROFR mechanism gives TDO ample opportunity to capture market parity pricing from Copa or otherwise a third-party buyer, according to Bernama.
“For a small explorer such as TDO, this ROFR deed provides TDO with a relatively simple, demonstrable and credible path to market but an ability to maximise value in that process,” it said.
Copa group of companies are joint venturers and operators of VIC/P79 and T/49P exploration permits in offshore Commonwealth waters of the Otway Basin, located along Australia’s southern coast. TDO retains a 20% participating interest in both permits.
3D Energi executive chairman Noel Newell said the finalisation of this agreement reinforces the JV’s commitment to fast-tracking commercialising any discoveries from the upcoming drilling programme.
