Woodside Leviathan stake in doubt

Woodside Petroleum Ltd's involvement in massive Leviathan offshore gas project in Israel has been cast in doubt over uncertainty surrounding domestic gas export laws, according to The Australian.

Woodside's role in the project has been jeopardised by a debate in Israel over how much gas production the country should set aside for domestic use and how much should be exported.

As a result of that debate, Leviathan's operator, Noble Energy, has allocated a larger share for domestic and regional supplies, at the expense of LNG exports Woodside would operate under a $US1.25 billion ($A1.34 billion) deal.

“Closing of these agreements [with Woodside] has been delayed primarily due to the uncertainty over exports,” Noble president Chuck Davidson told US investors in a briefing, according to The Australian.

“Hopefully we are nearing closure on that issue.”