Chevron Approves Major Expansion of the Leviathan Offshore Gas Project

Chevron Corporation (NYSE: CVX) — through its affiliate Chevron Mediterranean Limited (CML) and in partnership with other interest holders — has formally announced a Final Investment Decision (FID) to expand the production capacity of the Leviathan natural gas field. This strategic move has been confirmed following ongoing planning and investment considerations and represents a significant development in Eastern Mediterranean energy production.

Strategic Importance of the Decision

The FID marks a critical milestone in Chevron’s commitment to increasing energy supplies across Israel, Egypt, and Jordan, reflecting confidence in the long-term value of natural gas resources in the Eastern Mediterranean. Chevron’s leadership highlights the importance of this decision for fulfilling regional energy demand while supporting broader economic stability and energy security goals.

Clay Neff, President of Chevron Upstream, stated that Chevron’s ongoing role as a leading energy provider in the Eastern Mediterranean underpins its strategic focus on natural gas production and export capability. The FID underscores Chevron’s belief in the resilience and future prospects of regional energy markets.

Project Overview: Enhancing Production Capacity

The Leviathan expansion project involves a multifaceted upgrade of the existing production system to increase annual gas output. Key elements of the project include:

• Drilling of Three New Offshore Wells: These new wells will significantly boost the capacity of the Leviathan field by tapping into deeper reserves of natural gas.
• Additional Subsea Infrastructure: Expanded subsea systems will support increased extraction and transport of gas to the surface facilities.
• Enhanced Treatment Facilities: The project will include upgrades to processing equipment on the Leviathan platform to handle higher volumes of gas more efficiently.

Together, these enhancements aim to raise total gas delivery to approximately 21 billion cubic meters (BCM) per year, a substantial increase over current production rates. This expanded capacity is designed to meet growing regional demand and support long-term export agreements.

Regional Impact and Energy Security

The Leviathan field’s expansion will play a vital role in bolstering energy security not only in Israel but also in neighboring countries that rely on Eastern Mediterranean gas supplies. Chevron management highlighted that the project’s development reflects a deep commitment to regional energy collaboration — especially with Egypt and Jordan — to deliver reliable and affordable energy.

Jack Baker, Managing Director for Chevron’s Eastern Mediterranean region, emphasized the importance of the expansion in supporting millions of residents with essential energy. He noted that the FID represents a shared commitment between Chevron and the State of Israel to responsibly develop natural gas resources.

Leviathan’s Strategic Location and Export Potential

The Leviathan production platform is situated about 10 kilometers offshore Dor, Israel, in the Mediterranean Sea. This proximity to key regional markets makes the field a cornerstone of energy supply across multiple countries.

In recent years, the Leviathan partners have engaged in major sales agreements — including a significant export contract with Egyptian energy partners — that set the stage for long-term export of natural gas and broader market integration. The expansion aligns with these agreements by enabling increased supply capacity to meet both domestic and export-oriented demand.

Leviathan Ownership and Project Partners

The Leviathan reservoir is owned and operated through a consortium of energy companies that share interests in the field’s production and expansion plans. The ownership structure is as follows:

• Chevron Mediterranean Limited (CML): ~39.66% working interest (Operator)
• NewMed Energy: ~45.34% working interest
• Ratio Energies: ~15% working interest

This partnership combines Chevron’s global expertise with the regional capabilities and insights of NewMed and Ratio, positioning the project for successful execution and operational expansion.

Chevron’s Broader Energy Role in the Eastern Mediterranean

In addition to the Leviathan field, Chevron has a diverse portfolio of energy assets across the Eastern Mediterranean, demonstrating its long-term commitment to the region’s energy infrastructure and markets. These include:

• Tamar Gas Field (Israel): An existing producing field supplying natural gas for domestic use and regional trade.
• Aphrodite Gas Field (Cyprus): Currently under development, with future potential for natural gas production.
• Egyptian Offshore Exploration Blocks: Chevron operates two exploration blocks and participates in additional joint ventures in the Mediterranean Sea.

These assets collectively reinforce Chevron’s footprint in the Eastern Mediterranean and support the company’s broader strategy of providing reliable energy while exploring opportunities for cleaner and more sustainable operations.

Operational Timeline and Future Outlook

The Leviathan expansion project is scheduled to come online toward the end of this decade, following completion of construction and infrastructure upgrades. Once operational, the expanded facilities are expected to deliver enhanced production levels that serve both local and regional markets.

Chevron’s leadership has described the decision not just as an investment in infrastructure, but as a long-term commitment to energy development that aligns with evolving demand trends and strategic energy security objectives across the Eastern Mediterranean.

Economic and Geo-Political Context

The expansion comes amid a backdrop of shifting market dynamics, where natural gas continues to be a crucial transitional fuel for economies seeking to balance reliability with emissions targets. Markets in Israel, Egypt, and Jordan depend significantly on Eastern Mediterranean gas exports, making the Leviathan field’s expansion a catalyst for regional economic cooperation.

Over recent years, multiple agreements — including a landmark export deal to Egypt valued at up to $35 billion — have emphasized the growing importance of Eastern Mediterranean gas supplies to regional stability and energy diversification.

By reaching a Final Investment Decision, Chevron and its partners are signaling that they believe the momentum behind natural gas demand will continue into the coming decades. Their investments aim to ensure that the infrastructure is in place to meet that demand reliably.

Chevron’s Corporate Perspective

Chevron is one of the world’s leading integrated energy companies, with a mission to deliver affordable, reliable, and progressively cleaner energy solutions. Beyond fossil fuels, the company is investing in technologies and operations that aim to reduce carbon intensity and promote sustainable energy practices.

Chevron’s expansion in the Leviathan field is part of a larger strategic vision that balances conventional energy production with innovation and environmental stewardship. This approach reflects Chevron’s belief that natural gas — a lower-carbon fossil fuel compared with coal and oil — will play a key role in global energy transitions.

Conclusion: A New Chapter in Eastern Mediterranean Energy

The Final Investment Decision to expand the Leviathan natural gas field stands as a landmark development for Chevron and its partners, solidifying the region’s role as a major energy supplier. Through infrastructure upgrades, increased production capacity, and strategic regional partnerships, this project underscores the importance of collaboration in meeting future energy needs.

As the Eastern Mediterranean continues to attract global energy investments, the Leviathan expansion offers a glimpse into how international cooperation and long-term planning can shape resilient energy markets for decades to come.

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