Delays in Leviathan Project

The lack of consensus between investors and Israeli Government will delay the joint venture deal between Woodside and its Leviathan partners. 

The companies signed a Memorandum of Understanding (MoU) in early February, setting the 27 March 2014 as the deadline for a binding agreement.

According to the MoU, Woodside would have paid a total of USD 2.5 billion over several years. The Australia-based company would have paid $850 million upon signing the agreement to Noble Energy, Delek, Avner Oil Exploration and Ratio Oil Exploration. Woodside would have then acquired a 25% working interest in the 349/Rachel and 350/Amit licences. 

But a note released by Woodside on Friday suggests that talks will continue and investments will be delayed. 

‘The parties have not executed the definitive agreements by the target date of 27 March 2014 contemplated in the MOU. Discussions continue with the parties and the Israeli Government with a view to resolving the remaining issues and executing definitive agreements,’ reads the communiqué.

Previous uncertainties over Israel’s willingness to export its newly found natural gas have contributed in delaying joint ventures aimed at the export and monetisation of Israel’s offshore hydrocarbon riches. On 22 October 2013, Israel’s Supreme Court ratified the cabinet’s decision on gas export and domestic reservation policy.