Chevron has become one of, if not the largest, energy companies anywhere in the world through its substantial presence in several markets over the years. The company has an impressive portfolio that spans the entire global energy market, and has now revealed that it has signed off on a significant expansion of the Leviathan gas field, just off the coast of Israel, potentially setting the stage for a surge in upstream growth across the Eastern Mediterranean this year.
Final Investment Decisions are often a major step forward in the development of projects
For any energy company, developing a plan or proposal for energy projects can often come with a myriad of challenges and issues to consider before developing the project from concept to actual, on-the-ground projects. Thankfully, the energy industry is nothing if not pragmatic and adaptable.
Chevron, a major US energy company with substantial assets across the world, has reached a Final Investment Decision, along with its joint venture partners, for the expansion of the Leviathan gas field development off the coast of Israel. Chevron’s development plans for the region have become extremely important as new demand for energy this year is set to reach astonishing levels.
The Leviathan gas field is located just 6 miles off the coast of Israel, and once all the relevant expansion plans have been implemented by Chevron and its joint venture partners, will supply essential energy resources to Israel, Jordan, and Egypt.
“Chevron is a leading energy player in the Eastern Mediterranean where we are focused on natural gas production and exports. Our operations are critical to meeting the growing energy needs of local and regional markets. Our decision to invest in the expansion of Leviathan’s production capacity reflects our confidence in the future of energy in the region. Pragmatic U.S. and regional energy policies are helping to strengthen energy security across the Eastern Mediterranean and foster an environment that encourages investment in the Middle East and globally.” – Clay Neff, president of Chevron Upstream
Chevron’s expansion of the Leviathan gas field has become a priority to meet increased gas demand in the region
Chevron is boosting the regional energy security for nations that rely on the substantial developments that the company has been working diligently on. According to Chevron, the expansion plans call for three new offshore wells to be drilled, along with adding new subsea infrastructure.
The expansion of the Leviathan gas field development positions Chevron as a major developer in the Eastern Mediterranean upstream market. The project is being developed by a joint venture, including Chevron Mediterranean Limited as operator (39.66%), Ratio Energies (15%), and lastly, NewMed Energy (45.34%).
With the new year bringing a surge in new offshore drilling activities across the upstream market, Chevron is aiming to develop the Leviathan gas field to supply essential energy to the region.
“This milestone demonstrates our ongoing commitment to partner with the State of Israel to develop natural gas resources and provide essential energy to millions of people in Israel, Egypt and Jordan,” said Jack Baker, managing director of Chevron’s Eastern Mediterranean region
Despite recent developments, the global upstream market is set to surge this year
Despite the ongoing geopolitical tension in the region, Israel, Jordan, and Egypt will benefit tremendously from the significant expansion of the Leviathan gas field. The United States has become the number one producer of gas by capacity, and for good reason. Several US companies dominate the global upstream market with new developments across several growing markets around the world. For example, Murphy Oil has successfully drilled new wells in Vietnam, positioning the company as a major driver of growth in the Asian market.
