Globes: Woodside's Leviathan deal on verge of collapse
The huge deal in which Australia's Woodside Petroleum Ltd. is due to acquire 30% of the rights to the Leviathan gas reservoir for $1.25 billion is close to collapse
Woodside, Australia's largest gas exploration company, signed a memorandum of understanding with Noble Energy Inc., Delek Group Ltd., and Ratio Oil Exploration (1992) LP in December 2012. Under the memorandum, Woodside would make a $696 million down payment at the signing of the deal, which was scheduled for February, but has been frozen until the Israeli government decides on its gas export policy.
Implementation of the government decision on gas exports has been delayed until the High Court of Justice rules on a petition filed against the government by MKs, headed by Labor Party chairwoman MK Shelly Yachimovich and MKs Reuven Rivlin (Likud). Now another factor has emerged which might torpedo a deal: the Australian media reports that Leviathan's 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.