With the High Court of Justice ruling on whether the government is entitled to decide on natural gas exports due this week, Peter Coleman, the CEO of Woodside Petroleum Ltd. (ASX: WPL), which is due to buy 30% of the rights to the Leviathan gas field for $1.25 billion, told the Australian media, "The opportunity to buy in to a resource like Leviathan is a once-in-a-decade opportunity."
Coleman said, "The Leviathan field is one of the greatest discoveries in the world, in an ideal location for producing gas for Israel's residents and to export it."
Leviathan is owned by Noble Energy Inc. (NYSE: NBL), Delek Group Ltd. (TASE: DLEKG), and Ratio Oil Exploration (1992) LP (TASE:RATI.L).
Last week, "Globes" reported that the deal for Woodside to invest in Leviathan was on the verge of collapse, partly because of foot-dragging in Israel, and partly because of an apparent major change in the exports plans by the Leviathan partners. The Australian media report that the Leviathan partners have changed their export plans for Leviathan from building a liquefied natural gas (LNG) plant to building a pipeline to neighboring countries, apparently Turkey.
Under the memorandum of understanding, Woodside was due to make a $696 million down payment at the signing of the deal, which was scheduled for February, but the signing has been frozen until the Israeli government decides on its gas export policy.
Published by Globes [online], Israel business news - www.globes-online.com - on August 4, 2013
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013