KUALA LUMPUR (May 16): The Korea National Oil Corporation (KNOC) — South Korea's state-owned oil and gas company — will join 3D Energi Ltd and ConocoPhillips Australia's joint venture in Australia to hunt for new gas resources in the Otway Basin. 3D Energi is a 9.34%-owned associate of Hibiscus Petroleum Bhd (KL:HIBISCS).

KNOC will acquire a 29% interest in the Otway joint venture from ConocoPhillips Australia or COPA, which will reduce COPA's ownership in the JV from 80% to 51%. 3D Energi will retain its 20% interest in the JV, according to 3D Energi's statement to the Australian Stock Exchange on Friday.

COPA will remain the operator of the joint venture, which holds the exploratory permits VIC/P79 and T/49P. The entry of KNOC into this joint venture is subject to Foreign Investment Review Board (FIRB) and other regulatory approvals.

“I believe it is incredibly encouraging that KNOC will join our Otway joint venture, subject to regulatory approvals — it supports our view of the exceptional prospectivity in our permits and the overall commercial opportunity,” said 3D Energi's executive chairman Noel Newell.

He added that the company looks forward to working with KNOC “as the JV progresses towards becoming a significant East Coast gas producer”.

The permits in the Otway Basin are part of a broader portfolio of five exploration blocks held by 3D Energi, according to the company's latest annual report released last June.

The three others are: VIC/P74 in the Gippsland Basin, adjacent to the Kingfish oil field, Australia’s largest; WA-527-P in the Bedout Sub-basin, close to the Dorado oil discovery; and GSEL 759, located 20km southeast of Mount Gambier, near the South East Pipeline System. 3D Energi holds 100% participating interest in the three exploration blocks.

Listed on the Australian Stock Exchange, 3D Energi closed unchanged at 9.5 Australian cents (26 sen) on Friday, giving it a market capitalisation of A$33.09 million. Hibiscus ended the day four sen or 2.6% lower at RM1.50 on Bursa Malaysia, giving it a market capitalisation of RM1.15 billion.