Israel's Leviathan to Move Ahead, Says Woodside

Development of Israel's potentially rich Leviathan gas field should begin shortly, according to the Australian company which has just signed a big exploration contract. 

Leviathan holds an estimated 18 trillion cubic feet (tcf) of gas.

Chief executive of Woodside, which signed a deal with Israel several months ago, said progress had been delayed by the Israeli elections, but he expected progress to accelerate now.

"We expect the Leviathan agreement will be finalized during the next couple of months," Woodside Petroleum CEO Peter Coleman told Israeli media. He expressed concerns over the government's delay in deciding on a natural gas export policy, and calls to change regulations on gas exports.

In early December, Woodside signed a letter of intent to acquire 30% of the rights to Leviathan with its current owners, Noble Energy, Delek Group Ltd. and Ratio Oil Exploration for $1.25 billion (€950,000). The bulk of the payment will be paid when the deal is finalized.

In an interview with Israeli news website, Globes, Coleman said he had held a fruitful meeting with Israeli prime minister Benjamin Netanyahu. This had reassured his company that "Israel was looking very broadly with respect to the use of its gas resources and understanding what was the best way in the long term to ensure that it's utilized for the best of the Israeli people."

Earlier this month, Noble Energy chief executive Charles Davidson said production from Leviathan wouldn't begin until Israel set out export rules dictating how much gas could be sold abroad.