ConocoPhillips Australia has issued a buyout notice to 3D Energi for its 20 % participating interest in the VIC/P79 exploration permit in the Otway Basin off Victoria, Australia. The notice was sent on March 18 2026 and gives ConocoPhillips the right to acquire 3D Energi’s stake if the parties cannot agree on a fair‑market value within 30 days.
The VIC/P79 permit covers approximately 2,575 km² of shallow waters in the Otway Basin. ConocoPhillips Australia holds a 51 % operator interest, Korea National Oil Corporation (KNOC) holds 29 %, and 3D Energi holds 20 %. The buyout follows earlier default notices issued under the joint operating agreement, which were related to the Phase 1 drilling program that concluded with the discovery of natural gas at the Essington‑1 well in November 2025.
ConocoPhillips alleges that 3D Energi has defaulted on certain obligations under the joint operating agreement, triggering the buyout right. 3D Energi disputes the validity of the default notices and is seeking legal advice. The buyout would give ConocoPhillips full control of the permit, allowing it to streamline decision‑making and accelerate development after the recent gas discovery.
If the parties cannot agree on a fair‑market value, an independent expert will determine the price. 3D Energi faces the risk of dilution or loss of its 20 % stake if the buyout is exercised, which could have significant financial implications for the company. ConocoPhillips has indicated that it will pursue other remedies, including potential dilution, if the buyout is not exercised within the 30‑day window.
The move comes after ConocoPhillips completed its $22.5 billion all‑stock acquisition of Marathon Oil in November 2024, which expanded its portfolio and may have prompted a strategic focus on consolidating Australian assets. The Otway Basin remains a key gas‑producing province, and ConocoPhillips aims to accelerate development of the VIC/P79 permit to support Australia’s domestic gas supply.
No specific market reaction or analyst commentary has been reported for this event, as it is very recent. The announcement is the first public indication of a transaction involving ConocoPhillips’ Australian operations since the Marathon Oil acquisition.
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