Woodside Petroleum Talks With Consortium Over $2.6B Leviathan Gas Deal Collapse
By Vittorio Hernandez | May 22, 2014 9:19 AM EST
With this development, Woodside ended the Memorandum of Understanding with Noble Energy Mediterranean, Delek Drilling, Avner Oil Exploration and Ratio Oil Exploration to buy 25 per cent of the Leviathan Joint Venture after 17 months of negotiations between the parties "failed to reach a commercially acceptable outcome that would have allowed fully-termed agreements to be executed."
Despite effort from all parties to secure an outcome that is commercially viable, Woodside CEO Peter Coleman said they are acknowledging they will not reach the desired outcome under the current proposal.
The issues that hampered the deal include a possible change in Israel's tax and regulatory policies and the shift of focus from production of LNG to pipeline shipments.
The failed Leviathan deal follows ditching by Woodside in 2013 of its plan to build an onshore natural gas processing plant in Western Australia which would have cost the firm $74 billion.
Evan Lucas, market strategist of IG Markets, commented that Leviathan felt like Browse because of its huge cost but very low rate of return.
However, one group that would be happy with the collapse of the talks are the shareholders since Woodside is reportedly mulling giving back $1 billion to them via a special dividend declaration.
To contact the editor, e-mail:
Most Popular Slideshows
- Taylor Swift Named Forbes' Second Highest Paid Country Musician [PHOTOS]
- Forever Lost: Indescribable Anguish for Malaysia Airlines MH17 Families, Remains of Some Victims May Never Be Found (PHOTOS)
- Global Aviation Accidents: UN to Form Safety Task Force, Gov'ts Should Share Intelligence Info to Avert Future Incidents on Flying Over Warzones (PHOTOS)
- PageSix: Beyonce & Jay Z Union is Not About Love, All About Business & the Brand
Join the Conversation
- New Malaysia Airlines Caught in Adelaide Airport Latest Scare
- Toyota Tops World Sales of Cars, Sells Over 5K Million Vehicles in First Half of 2014
- Formula 1 Chief Sues Google over Sex Party Pictures
- Air New Zealand Pays $1000 to NZ9 Passengers After Three-Night Delay
- Qatar's Surging Real Estate Prices Won't Affect Thriving Economy – Report
- Samsung Galaxy S5 Alpha Leaks Online: Release Date, Five Features to Wait for New Smart Phone
- Freshly Leaked Apple iPad Air 2 Cases Confirm Touch ID Sensor; Release Date, Limited Specs and Price Listed
- Photos of Motorola Moto X+1 Prototype and Specs Leak Online, Release Date, Four Fresh Features Revealed
- Moto X Android 4.4.4 KitKat Update Guide: Schedule and How to Install
- Sony Xperia Z3: Release Date, Five Features to Expect from New Android Smart Phone
- Top Surprising Features Of iOS 8
- Top 4 Reasons Why iPhone 6 Will Hit Big Soon After its Sept 2014 Release Date