Chevron Corporation (NYSE: CVX) has disclosed a significant development concerning its offshore natural gas operations in the Eastern Mediterranean. Its subsidiary, Chevron Mediterranean Limited (CML), alongside partners NewMed Energy and Ratio Energies, has finalized an investment decision to expand the production capacity of the Leviathan offshore gas platform situated off the coast of Israel.
The Leviathan platform, positioned approximately 10 kilometers offshore near the city of Dor, Israel, is one of the region's notable natural gas production assets. The expansion project encompasses drilling three additional offshore wells, the installation of extra subsea infrastructure, and enhancements to the existing treatment facilities aboard the platform. These measures are anticipated to amplify gas output, targeting an annual delivery volume of roughly 21 billion cubic meters to both Israel and neighboring countries.
Ownership of the Leviathan field is divided among three entities with Chevron Mediterranean Limited acting as the operator, possessing a 39.66% working interest. NewMed Energy holds a 45.34% stake, while Ratio Energies owns the remaining 15%. The cooperative ownership structure underscores a shared commitment to unlocking the full potential of the Leviathan gas reserves and responding to regional energy demands.
Execution of the expansion is aimed at commencing operations towards the latter part of this decade, positioning the project as a critical contributor to the Eastern Mediterranean’s energy supply landscape in the medium to long term.
Executives representing Chevron elucidated the strategic importance of this investment. Jack Baker, managing director for Chevron’s Eastern Mediterranean operations, underscored the company’s dedication to collaborating with the State of Israel to harness natural gas resources effectively. He highlighted the role of this development in securing energy access for populations in Israel, Egypt, and Jordan.
Moreover, Clay Neff, Chevron Upstream president, emphasized confidence in the regional energy future, noting the favorable environment fostered by pragmatic U.S. and regional energy policies. He pointed out how these policies bolster energy security throughout the Eastern Mediterranean and create an investment climate conducive to expanding natural gas production capabilities.
From a financial and operational standpoint, Chevron has indicated a substantial organic capital expenditure allocation for 2026. The company anticipates spending between $18 billion and $19 billion across its consolidated subsidiaries’ operations, aligning with its broader strategic priorities. Additionally, Chevron has projected an annual growth target of 2% to 3% in oil and gas production through 2030, signaling a steady production ramp-up in the foreseeable future.
Investors will be closely monitoring Chevron’s fourth-quarter financial results, scheduled for release on January 30, for further insights into the company’s operational progress and capital deployment.
On the market front, Chevron shares exhibited a positive reception to the announcement. Premarket trading on Friday saw the stock climb by 0.51% to reach $167.00, nearing the company’s 52-week high of $169.37. This upward movement in share price reflects investor confidence in the company’s strategic initiatives within the Eastern Mediterranean and its capacity to drive long-term value.