Shell Moves Closer to Sell Stake in Woodside
The decision of Royal Dutch Shell to sell its $6.4 billion stake in Woodside Petroleum could be a sign of increased activities in the Leviathan field.
Australia’s second largest oil and gas company is expected to announce a final investment decision on the field in Israel’s waters in the coming months. The final decision is likely to come after Shell’s long-awaited sale of its 23% stake in Woodside.
Last week, the Perth-based company said that it would announce a decision by the end of June 2014, after Israeli government’s definition of the new tax policy for gas export projects.
Woodside and the Leviathan Joint Venture participants are discussing the offer. A non-binding deal that was penned earlier in February 2013. The Australian company would acquire 30% equity in the Leviathan field.
Woodside's motive for the Leviathan deal is to build an LNG plant to sell gas to China and other Far Eastern countries. According to Nomura Holdings, Shell’s sale could pave the way to investments by China’s Cnooc and China Petroleum & Chemical Corp.