ConocoPhillips Australia is nearing completion of the previously proposed acquisition of majority interest in the offshore Tasmanian Permit T/49P from 3D Oil.
First announced in December 2019, the deal entailed ConocoPhillips acquiring a 75 percent stake. This has now been raised to 80%.
3D Oil said Thursday that the two companies had signed Joint Operating Agreement to satisfy a key condition of the farm-out of T/49P.
Under the agreement, 3D Oil will receive cash payment of A$5 million, and keep 20% stake, down from previously agreed 25 percent. 3D Oil has explained that by lowering the ownership stake, it would also lower joint operation expenses.
The deal calls for ConocoPhillips Australia to acquire at least 1580 sq km of 3D seismic in T/49P at no cost to 3D Oil. After that, ConocoPhillips Australia can elect to drill an exploration well in which it will carry up to the first US$30 million of costs.
Completion of the farm-out will occur following government approvals.
3D Oil will contribute 10% of the joint operation expenses until ConocoPhillips Australia has completed an exploration well or spent at least US$30 million toward drilling of an exploration well.