Woodside misses Israeli gas deadline

Written By Unknown on Jumat, 28 Maret 2014 | 13.23

WOODSIDE Petroleum has missed a deadline to seal a $US2.7 billion ($A2.92 billion) deal for a stake in a natural gas project in Israel.

Woodside had intended to take a 25 per cent stake in the Leviathan project with an $US850 million up-front payment, but has not yet agreed on terms with the Israeli government.

Israeli media has reported Woodside, its joint venture partners and the Israeli government cannot agree on how profits would be taxed, with the company seeking to use its investments in the field to offset tax rates.

Woodside said discussions would continue, with a view to resolving the issues and executing agreements.

Israel's largest gas field is a key part of Woodside's future growth plans, but has been repeatedly delayed, as has its Browse project in Western Australia.

Under the licence terms, the Noble Energy-led project must set aside 9.2 billion cubic metres of gas a year for use in Israel.

Gas for domestic use would generate lower prices than exports, and the amount represents more than half of the current planned production.

Woodside shares gained 22 cents to $38.65.


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