By John Kell
Noble Energy Inc. (NBL) has signed a pact with Australia-based
Woodside Petroleum Ltd. (WPL.AU) to sell offshore Israel
natural-gas licenses for over $1 billion in upfront payments and
future shared revenue.
Under the terms of the nonbinding pact, four companies,
including Noble, are participating as sellers of their 25% interest
in the licenses to Woodside.
Noble says it intends to continue as upstream operator with a
30% working interest, and following the completion of the deal,
Woodside will operate any liquefied natural gas development of the
field.
Noble, which has been operating in offshore Israel since 1998,
has said the so-called Leviathan project is the company's "largest
exploration success" in its history.
On Thursday, Noble said total compensation is anticipated to
include $525 million in cash payments plus $502 million in shared
future revenue. An additional payment of $19 million, net to Noble,
will be made should Leviathan exceed a certain target.
Write to John Kell at john.kell@wsj.com
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