Australian energy exploration company Woodside Petroleum Ltd. (ASX: WPL) continues to conduct talks to become a partner Noble Energy Inc. (NYSE: NBL) and Delek Group Ltd. (TASE: DLEKG) Cypriot license despite having withdrawn from buying rights in Israel's giant Leviathan field.
Woodside believes that the Cypriot field is very suitable for developing a Floating Liquid Natural Gas (FLNG) installation the same solution it was unsuccessfully attempting to promote as the preferred option for Leviathan.
Noble Energy and Woodside, managed by CEO Peter Coleman, declined to comment on the report.
Noble Energy holds 70% of the rights to Cyprus's Block 12, which borders on Israel's Pelagic licenses, an area north of Leviathan. In 2011, Delek units Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling Limited Partnership (TASE: DEDR.L) realized an option to buy 30% of the rights from Noble who shortly afterwards signed a revenue division agreement with the Cypriot government.
In early 2012, Noble discovered an estimated 5.2 TCF of gas in Block 12's Aphrodite field. This is half the size of Tamar and a quarter the size of Leviathan. The estimate was lowered by NSAI to 4.1 TCF last year.
Woodside had planned to buy 25% of Leviathan for $2.71 billion but withdrew due to disagreements over export priorities following Noble, Delek and Ratio's preference for a regional pipeline rather than an FLNG for exports to East Asia.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2014
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