KUALA LUMPUR (June 24): Hibiscus Petroleum Bhd (KL:HIBISCS) said on Monday that 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 ConocoPhillips Australia (COPA) group of companies.

In a filing with Bursa Malaysia, Hibiscus Petroleum said that COPA, under the deed, 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.

“For a small explorer such as TDO, this ROFR deed [not only] provides TDO with a relatively simple, demonstrable and credible path to market, but an ability to maximise value in that process,” it said.

The 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 joint venture’s commitment to fast-tracking commercialising any discoveries from the upcoming drilling programme.

“The JV is aligned in aiming to bring gas to market in the shortest timeframe achievable at a time when new gas supply is desperately needed on Australia’s east coast,” he said.

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