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Woodside terminates Israeli JV deal

Woodside terminates Israeli JV deal

Photo by Bloomberg

21st May 2014

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Australian oil major Woodside Petroleum on Wednesday announced that it would terminate its involvement in the Leviathan Joint Venture (JV), in Israel.

Woodside entered into a memorandum of understanding (MoU) with the Leviathan JV partners in February this year to acquire a 25% interest in the project. However, to date, the parties have been unable to agree on commercially acceptable terms for the JV.

Under the terms of the original MoU, Woodside would have paid some $850-million for its stake in the project and a further $350-million on a final investment decision or export milestones.

“All parties have worked very hard to secure an outcome which would be commercially acceptable, but after many months of negotiations, it is time to acknowledge we will not get there under the current proposal,” said Woodside CEO Peter Coleman.

He noted that it had been a difficult decision on Woodside’s behalf, and one not lightly taken.

“While Woodside’s commitment to growth is strong, even stronger is our commitment to making disciplined investment decisions,” Coleman added.

The Leviathan project has an estimated 2C contingent resource of 18.9-trillion cubic feet of natural gas and 34.1-million barrels of condensate.

Edited by Mariaan Webb
Creamer Media Contract Publishing Editor

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