SYDNEY, Feb. 7 (Xinhua) -- Australian oil and gas producer Woodside Petroleum announced on Friday that it had entered a non- binding Memorandum of Understanding (MoU) with the Leviathan joint venture participants for the acquisition of an interest in the Leviathan gas project in Israel.
The Leviathan joint venture participants include Noble Energy Mediterranean Ltd, Delek Drilling, Avner Oil Exploration and Ratio Oil Exploration.
In a statement to the Australian Securities Exchange, Woodside says the MoU provides a framework for it to negotiate the acquisition of a 25 percent participating interest in each of the 349/Rachel and 350/Amit petroleum licenses.
Woodside has seven weeks to finalize the 1.2 billion U.S. dollar deal after signing the MoU.
The MoU with joint venture partners is conditional upon tax and regulatory approvals from the Israeli government.
Woodside chief executive officer Peter Coleman said the MoU provided a potential commercial outcome with compelling value.
"We look forward to the ongoing engagement with the joint venture, government and other stakeholders to move forward with the Leviathan project," Coleman said in the statement.
The Leviathan gas field in the Mediterranean Sea in Israel has an estimated 18.9 trillion cubic feet of natural gas and 3.4 million barrels of condensate.