Woodside to Sign Leviathan Deal Next Week

Woodside is likely to pay $3 billion for 30% of the Leviathan gas field offshore Israel, reports Israeli newspaper Globes citing sources.

Source have told Globes that the deal is likely to be signed next week when senior officials of Delek Group, Ratio Oil Exploration and Noble Energy visit Australia.

With the Woodside deal being worth $3 billion, the field is valued at over $9 billion.

Under the original terms of the deal agreed in December, Woodside was to have paid just $2.5 billion, adds Globes.

According to the newspaper matters still delaying the final signing of the deal is the question of taxation.

There remains a gap between the position of the Israel Tax Authority, which seeks to collect capital gains tax on the deal as soon as it is signed, and the position of the Leviathan partners, which seek a deferment of the tax payment, on the grounds that the entire consideration for the sale of the rights will be invested in developing the reserve, reports Globes.

The taxation issue will likely be further discussed between the Leviathan partners and Woodside, and the Tax Authority.

A number of other matters remain open, but the deal should be signed next week, says Globes.

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