Woodside to buy into Leviathan LNG off Israel

A joint venture of Noble Energy Mediterranean, Delek Drilling LP, Avner Oil & Gas Exploration LP, and Ratio Oil Exploration LP has reached agreement with Australian company Woodside Petroleum Ltd. on terms under which Woodside can buy into the 349/Rachel and 30/Amit licences offshore Israel that contain the Leviathan gas field. Woodside is the preferred partner in a competitive bidding process.

Woodside would acquire a 30% interest in the field which is estimated to contain reserves of 17 tcf of gas. Woodside also would be included in other exploration opportunities in the permits.

The agreement involves an initial up-front payment of $696 million. Woodside has also offered $200 million once laws permitting LNG export from Israel are in place. This would be followed by a payment of $30 million on final investment decision for a Leviathan LNG development.

In addition there would be potential annual revenue sharing payments equal to 11.5% of Woodside’s incremental revenue above an agreed escalating price threshold over the life of the project capped at $1 billion.

Under the agreement, Woodside would be operator of any LNG development in the Leviathan permits. Noble said there would be an initial production from the field into the Israeli domestic market in 2016, however a pre-FEED assessment for an LNG project is also under way.

The deal is subject to a number of conditions, including execution of a fully termed agreement.

Related Articles

Canadian firms plan BC gas plant, target LNG export

08/19/2014 AltaGas Ltd. and Painted Pony Petroleum Ltd., both of Calgary, have agreed to develop processing and marketing of natural gas and NGLs for Painted ...

EIA: China to increase natural gas consumption, investment

08/18/2014 China more than tripled natural gas production since 2003, producing 3.8 tcf in 2012, and the government is targeting production to reach about 5.5...

DOE finalizes LNG export national interest review reforms

08/15/2014 The US Department of Energy finalized reforms it proposed on May 29 to its process for determining whether planned LNG export projects are in the n...

Prelude FLNG turret sets sail for Samsung shipyard

08/15/2014 The largest piece of the turret for Shell’s 3.6 million tonne/year Prelude floating LNG (FLNG) plant has set sail from Dubai for the Samsung Heavy ...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected