Woodside Petroleum has played down suggestions that its gas project in Israel is under threat as it faces regulatory hurdles.
Chief executive Peter Coleman told reporters in Houston that he was confident the Leviathan deal would go ahead, despite speculation that Israeli regulators might not allow it to proceed.
In December Woodside announced it had struck a million ( million) deal with the US-based firm Noble Energy giving it a 30 per cent interest in the Leviathan gas prospect off the coast of Israel.
But analysts have questioned whether the Israeli government is interested in enacting laws to allow the export of liquified natural gas, given the country's limited resources.
Woodside will consider a final investment decision on a domestic gas development related to Leviathan this year.
Last month the oil and gas giant increased its capital expenditure budget for 2013, with a forecast it will spend about .0 billion on Leviathan.
Morningstar analyst Mark Taylor said Israel was not flush with natural resources so it might want to keep some or all of the gas for itself.
"Obliviously Woodside thinks there's a very good chance this thing will go through or they wouldn't have bothered to do the due diligence and make announcements," Mr Taylor said.
"It could fall over. It would be a good thing if it did, but there's no reason to believe it will at this point in time."
He said Woodside had most probably sought assurances from the Israeli government around security from the military, whether it will be allowed to export LNG and fiscal terms surrounding the agreement.
"It's all been pretty light on detail," he said.
Woodside has agreed to pay million (.5 million) once laws permitting LNG exports from Israel are in place, and another million ( million) once a final investment decision is made on an LNG development.
Israeli media has reported that the head of the Israel Antitrust Authority will soon decide whether a cartel exists between Noble and its partners in the Leviathan field, including Delek Drilling.
At 1408 AEDT Woodside shares were 25 cents, or 0.7 per cent, higher at $37.34.
