Woodside Petroleum Ltd., an Australian-based company, has informed that it submitted a bid to buy a stake of Leviathan. The company said that it was in the early stage of bidding for a share in a huge natural gas field offshore Israel. The bid for Leviathan is one of signs showing that Australia’s Woodside Petroleum is trying to expand its operations.
Bid for Israel's Leviathan
Woodside Petroleum confirmed on the 23rd of October the bid for a stake in Leviathan. As it was stated, Australia’s Woodside Petroleum was, however, in the early stage of bidding. According to the company’s statement, it is a competitive bidding process to secure licenses in Israel. Australia’s Woodside Petroleum’s bid for a stake in Leviathan is certainly welcomed by partners in the field as the Israel’s gas group announced just in September a strategic plan regarding finding an international partner for approximately 30 percent of its shares.
However the price and terms of agreement have not been revealed. A spokesperson representing Woodside Petroleum, stated: “Woodside will not be giving out additional information at this point. Any speculation about price and commercial terms is premature.”
Partners in the Israel’s Leviathan field confirmed that international gas explorers, including Australia’s Woodside Petroleum, submitted bids for 30 percent of the prospect.
On the 22nd of October Peter Coleman, chief executive officer at Woodside Petroleum Ltd., met with Israeli Prime Minister Benjamin Netanyahu as the Australian company formally entered bidding for as much as 30 percent in the Leviathan gas field.
The Israel’s field has approximately17 trillion cubic feet of gas, which makes it not only the largest deepwater natural gas find in the decade but also a strategic asset for the future of the economy of Israel, according to Israeli Prime Minister Benjamin Netanyahu. The Leviathan field is located in 1,634 meters of water offshore Israel and had been discovered by Noble Energy Inc. back in 2010.
Leviathan, the gas group, has been looking to bring new stakeholders to raise cash for the new project which is to begin production in 2017. Partners in Leviathan group include Noble Energy Inc., Delek Drilling Ltd., Avner Oil Exploration Ltd. and Ratio Oil Exploration Ltd.
Australia’s Woodside plans to expand
Woodside Petroleum Ltd. has been looking for an opportunity to broaden its portfolio of oil and gas assets in order to meet its growth targets. The company confirmed that it considered its options of expansion in the Eastern Mediterranean, Southeast Asia and the Americas as well. Peter Coleman has been looking for opportunities to expand offshore operations since he took over as chief executive officer at Woodside Petroleum Ltd.
On the 19th of October Australia’s Woodside Petroleum informed that it would create a partnership with South Korea’s Daewoo International Corp. in a venture off the coast of Myanmar. The company’s bid for a stake in Leviathan is considered a part of shift in its growth strategy. Certainly the Australia’s Woodside Petroleum’s shift to a more international portfolio comes as its oil and gas developments located in Australia struggle to keep costs under control.