Noble Energy to sell offshore licenses to Woodside
Noble Energy Inc. NBL+2.56% 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.