Woodside Petroleum’s Leviathan deal stalls again
- Business Spectator
- March 28, 2014
WOODSIDE Petroleum has confirmed its long-awaited entry into the
mammoth Leviathan offshore gas project in Israel has been delayed once
again.
The oil exploration company first announced a conditional purchase
of 30 per cent of the mammoth project in December 2012 before agreeing a
revised deal last month, which saw the termsl adjusted to a 25 per cent
stake for about $2.85 billion.Upon announcing the revised deal, Woodside reported a deadline of March 27 for it to be finalised.
However, Woodside confirmed in statement that the parties had not executed the definitive agreements contemplated in the MOU.
“Discussions continue with the parties and the Israeli government with a view to resolving the remaining issues and executing definitive agreements,” Woodside said.
A signing ceremony in Jerusalem was slated to take place at 6.30am (AEDT).
According to Israeli business news service Globes, a spokesperson for Delek Drilling, Elad Cohen said there were certain tax issues that still needed to be worked out between the respective parties.
Woodside is said to be weighing an upsetting draft ruling on taxing gas exports from Israel, Globes reports.
It is not clear whether the deal is now in question, though the latest agreement had been conditional on the taxation issue being sorted to Woodside’s satisfaction.
The joint venture partners in the project include Noble Energy, Delek Drilling, Avner Oil Exploration and Ratio Oil.
Link to source: http://www.theaustralian.com.au/business/mining-energy/woodside-petroleums-leviathan-deal-stalls-again/story-e6frg9df-1226867211800#
