Woodside Petroleum expresses doubt over possible Leviathan returns
Woodside, the ASX-listed oil and gas business, has expressed doubt over the potential returns available from Israel’s Leviathan gas project, the Australian Financial Review reported.
The report cited Woodside’s chief executive, Peter Coleman, as saying that changes to the project’s development plan to favour exports by pipeline over floating LNG may have reduced the investment’s attraction for Woodside. Coleman noted that the increased pipeline component has reduced the upside for Woodside.
The item noted that Coleman’s comments indicate that Woodside’s involvement in the project is increasingly uncertain.
The report said that Noble Energy said last week that it would not wait for Woodside to buy into the project before proceeding with development. Noble and its partners are working on several deals to sell gas from the project to neighboring countries through pipelines. Coleman noted that when the deal was first mentioned in December 2012 the plan was for a floating LNG plant that would export gas by tanker to Asian markets.
Coleman noted that it was a hard decision not to enter an agreement with Noble on the 27 March target date, but the company had to ensure the deal offered adequate returns.
Woodside is seeking to acquire 25% of the Leviathan field, the report said. Coleman noted that talks are still ongoing.
Source Australian Financial Review