3 December 2012
Details
Woodside has reached an agreement in principle
to acquire a 30 % participating interest
in Leviathan field offshore Israel,
one of the largest recent gas discoveries worldwide,
which could see the company play an important role
in the potential development of
Liquefied Natural Gas industry in Israel.
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The Leviathan Joint Venture Participants,
* Nobel Energy Mediterranean Limited,
* Delek Drilling LP,
* Avner Oil Exploration LP and
* Ratio Oil Exploration (1992) LP
have reached an agreement with Woodside
on the key commercial terms under which
- Woodside will acquire a participating interest
in each of the
349/Rachel and 350/Amit petroleum licenses
which contain the Leviathan field
- Woodside will be the operator of
any LNG development of the field,
while Nobel Energy will remain upstream operator.
- Nobel Energy targets initial production of
domestic gas market in 2016.
- A pre-FEED (Front End Engineering and Design)
assessment for an LNG project is underway.
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Under the agreement
- Woodside will acquire 30 % interest in the Leviathan field
estimated to contain about 17 trillion cubic feet of
recoverable natural gas
- the agreement will allow Woodside to participate in
further exploration opportunities in the Leviathan licenses
Payment
- The agreement involves an initial upfront payment
of US $696 million.
- Woodside has offered the following contingent payments
* A payment of US$ 200 million once laws permitting
LNG export from Israel
* A payment of US$ 350 million on
a final investment decision in relation to
an LNG development
* Potential annual LNG revenue sharing payments
equals to 11.5 % of Woodside's incremental revenue
above an agreed escalating price threshold,
over life of the project, (capped at US$1 billion)
* Carry of expenditure up to US$ 50 million
in relation to costs associated with
the driling of a deep oil exploration well
targetted for late 2013.
Woodside, Australia
- The agreement was significant step towards
realising Woodside's ambition to secure world-class
growth opportunities
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