Woodside Pulls Out Of Leviathan Deal

Development of Israel’s 19 tcf Leviathan gas field took a knock this week after Australian LNG experts Woodside finally pulled the plug on protracted talks to purchase a 25% stake, worth in excess of $2bn.

After months of talks with local tax authorities, Woodside has officially withdrawn its interest in Israel’s Leviathan gas field. The company had originally signed a non-binding Memorandum of Understanding with the Leviathan partners in December 2012. But the deal stumbled at the eleventh hour when Woodside failed to show-up at a scheduled signing ceremony (MEES, 28 March).

Initially the Australian company had cited issues with the Israeli Tax Authorities for its hesitation to go through with the deal, but in a statement released this week, Woodside said an impasse had been reached with the field’s partners regarding the first phase of the field’s development. (CONTINUED - 653 WORDS)