Karoon Gas has decided against exercising its right to pre-empt PetroChina's purchase of a 20% stake in the Poseidon gas-condensate discovery off Western Australia, the company said Friday.
"By not exercising its pre-emptive right under the joint venture agreements, Karoon clears the way for the entry into the joint venture of a second highly appropriate partner for the future development of the Poseidon project," Karoon said. "PetroChina is also a potential end-user for LNG out of Poseidon."
Poseidon operator ConocoPhillips announced it would sell the interest in the Browse Basin field, in exploration blocks WA-315-P and WA-398-P, along with a 29% stake in the Goldwyer shale in Western Australia's onshore Canning Basin, in February. As part of the deal, ConocoPhillips plans to team up with PetroChina to explore for unconventional resources in the Neijiang-Dazu block in China's Sichuan Basin.
The Poseidon joint venture has exercised an option to extend the Transocean Legend rig contract to six firm wells for a second phase of drilling, which is expected to continue into mid-2014.
Karoon Gas holds 40% of the WA-315-P and WA-398-P blocks.