The Leviathan field’s size is estimated at 18.9 trillion cubic feet (535 billion cubic metres) of natural gas, along with 34.1 million barrels of condensate, and has been hailed as the largest gas deposit found in the world in a decade.
RBC Capital Markets analyst Andy Williams said it was good that Woodside walked away when the numbers did not add up.
“It all comes down to the economics,” he said. “If it doesn’t work for you then you cut it and go.”
Woodside has been under pressure to find new sources of growth after the Perth-based company and partners including Royal Dutch Shell and BP last year delayed the multi-billion-dollar Browse gas-export project off Western Australia.
Analysts said the company would likely use the money saved to target acquisitions elsewhere or return cash to shareholders via a special dividend.
