WOODSIDE Petroleum boss Peter Coleman would love to pull off a big overseas deal and set his company up for years of strong growth.
But this week's announcement that the oil and gas giant will defer a $1.25 billion investment in Israel isn't going to get him to that point anytime soon.
The well-touted Leviathan LNG project in the Mediterranean Sea is getting increasingly complicated, as a series of regulatory delays and problems with its joint venture partners force the company to tread carefully.
Some believe Woodside should concentrate on what it knows best - delivering low cost LNG from offshore gas fields in Western Australia.
But Mr Coleman has larger growth aspirations.
This week he said Woodside would wait another two months before committing to a 30 per cent stake in the Leviathan project with US-based firm Noble Energy.
That's more than a year after he announced the project.
"We're not in it to do a deal for a deal," Mr Coleman told analysts.
"It needs to be a compelling value case given the amount of investment involved in the decision."
Some analysts have highlighted the geopolitical risks involved and questioned the viability of exporting gas from Israel which is grappling with its own gas reservation policy and tax regime.
Late last year Woodside said it planned to stump up $1.4 billion for Leviathan, a decision which was based entirely on a Tzemach advisory panel report.
The Tzemach report recommended Israel export just over half of its gas, but it sparked outrage among Israelis who want most of the gas reserved for domestic purposes.
Mr Coleman said the new Israeli government had given Woodside assurances around LNG export volumes.
Further legal challenges could create more uncertainty.
It comes as Woodside awaits the outcome of a review into Israeli tax law relating to LNG and pipeline exports which is due to be released in early February.
In addition, joint venture partners are reportedly talking about building a pipeline into Turkey.
For all of the "moving parts" involved in doing business in the Middle East, Mr Coleman remains upbeat but cautious ahead of committing shareholder funds.
"There's still an opportunity for Woodside to create significant value within the joint venture, but first and foremost we are focused on ensuring that we have a commercial outcome that delivers value to us," he says.
He has previously said the company would prefer to give money back to shareholders if a project doesn't stack up.
"We have other options that we're also pursuing and in this case we're ensuring that whatever we do, if we do enter into this joint venture, it's done in a way that's a commercially sensible outcome for all of us."
Woodside's overall estimated investment expenditure for 2013 has dropped to $US1.1 billion ($A1.21 billion) from the previous guidance of $US2.3 billion ($A2.53 billion) due to the deferral of expected expenditure on Leviathan.
Total investment expenditure in 2014 is expected to be between approximately $US2.0 billion ($A2.25 billion) and $US2.4 billion ($A2.70 billion).
It comes as Mr Coleman was this week quizzed about Woodside's stalled Sunrise project in the wake of the East Timor spy scandal, and a fortnight after Mr Coleman completed a trip to Japan where he began marketing gas from the proposed Browse floating LNG project in north Western Australia.
He would not reveal details of recent price negotiations, but indicated the company was in a strong position in Japan as the nation struggles to secure energy after the Fukushima nuclear accident.
Woodside spent more than $1 billion on the controversial Browse onshore proposal near Broome but abandoned it after widespread community opposition, citing higher costs.
The risks of outlaying a similar amount will be in the front of Mr Coleman's mind next year as Woodside crunches the numbers on Leviathan, factoring in a substantially weaker Australian dollar.
Around this time the company is due to open an office in Myanmar as it continues exploring in New Zealand, Ireland and WA.
