Woodside CEO Peter Coleman is in Israel to meet with senior government officials to try and save the $2.71 billion Leviathan deal.
Woodside Petroleum Ltd. (ASX: WPL) CEO Peter Coleman arrived in Israel last night in his attempts to reach agreement over the tax that will be imposed on natural gas exports so that the Australian company's acquisition of 25% of the rights to the Leviathan field for $2.71 billion can go ahead.
Coleman is expected to meet with Prime Minister's Office director general Harel Locker and Ministry of Finance director general Yael Andorn during his brief visit. Andorn heads a government committee that will recommend the model on which the government will base its tax assessment for gas exports.
Sources inform "Globes" that the gap between the sides is as high as 70%. Woodside is asking for a tax model that would reflect returns of at least 17% on the capital they are investing in the project. However, the external advisor to the Ministry of Finance Prof. Robert Pindyck recommends returns of just 10%. Coleman has warned in the past that the tax issue could scupper the deal.
Published by Globes [online], Israel business news - www.globes-online.com - on March 13, 2014
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