Woodside Awaits Israeli Tax Regime For Leviathan Investment Decision

Australia’s Woodside Petroleum will take a decision about its investment in the Leviathan gas field after the first half of 2014, waiting for the disclosure of details about gas exports by Jerusalem. 

“It needs to be a compelling value case, given the amount of investment that would be involved and the significance of the decision,” Woodside’s Chief Executive Officer Peter Coleman said as reported by Bloomberg.

In August, Coleman said the Leviathan offshore field was a “once-in-a-decade opportunity.” Woodside's motive for the Leviathan deal is to build an LNG plant to sell gas to China and other Far Eastern countries. 

Supreme Court’s rejection of the petition against a 40% export quota paved the way to a greater enthusiasm on export projects. 

The new tax policy for gas export projects is one of the main details to be disclosed. 

Finance Minister Yair Lapid said on Monday that Israel will soon be called to operate adjustments to switch from oil and coal to gas.

SHELL’S DIVESTMENT

At the same time, Shell mulls a 23.1% stake in Woodside. 

It is unlikely that Australia will allow Chinese NOCs’ investment in Woodside. The divestment is expected to end up in a split up of Shell’s shares, wrote Reuters on Friday.

Shell tried to acquire Woodside in 2011. It did not manage to complete the operation.

One single strategic buyer could be put off easily by the Australian government.