Chevron Corporation CVX, along with its partners in the Israeli Leviathan offshore natural gas project, has submitted a $2.4 billion plan to Israel’s Ministry of Energyto expand the field, resulting in a production boost. The updated reservoir development plan focuses on increasing capacity through additional drilling, facility upgrades and a potential pipeline.
The expansion, known as Phase 1B, is structured into two stages. The first stage involves drilling three additional production wells, enhancing subsea infrastructure and expanding offshore processing facilities. This phase is expected to raise production capacity to 21 billion cubic meters (bcm) per year.
In 2019, the Leviathan deep-sea field came online and produced 12 bcm of gas per year for sale to Israel, Egypt and Jordan. With the laying of a third pipeline, the field’s production capacity is expected to rise to about 14 bcm by 2026.
The second stage proposes further well drilling and installing a fourth pipeline, potentially boosting the daily production capacity by 2 bcm a year to a total of 23 bcm annually.
NewMed, one of the field partners, notified that they have already approved a budget of $505 million that includes the purchase of equipment.
Beyond boosting domestic supply, the project is designed to expand natural gas exports. The partners are looking forward to receiving the required regulatory approvals and signing new supply deals for the sale of natural gas produced from the Leviathan field to the domestic market and export in a total volume of over 100 bcm. These efforts align with Israel’s ambition to strengthen energy partnerships across the Mediterranean and beyond.
Leviathan is one of the biggest deepwater natural gas fields in the world and the Leviathan reservoir is the most stable and strongest energy hub in the Mediterranean. The Leviathan field in the Levant Basin has witnessed about 85 trillion cubic feet of hydrocarbon resources discovered over the past two decades. Due to the huge hydrocarbon resources in the field, the natural gas reserves have increased by about 40% over the last 10 years. The Leviathan project, partnered by New Med Energy (holding a 45.34% stake in the project), Chevron Mediterranean (39.66%) and Ratio Energies (15%), is one of the biggest natural gas developments in the Mediterranean that supplies gas to Israel, Egypt and Jordan.
Houston, TX-based Chevron is one of the largest publicly traded oil and gas companiesthat participates in every aspect related to energy —from oil production to refining and marketing. Currently, CVX has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some top-ranked stocks like Repsol, S.A. REPYY, Prairie Operating Co. PROP and Gulfport Energy Corporation GPOR.While Repsol and Prairie Operating currently sport a Zacks Rank #1 (Strong Buy) each, Gulfport Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Repsol explores, develops and produces crude oil products and natural gas, transports petroleum products and liquified petroleum gas and refine petroleum. REPYY’s expected EPS (earnings per share) growth rate for the next year is 17%, which aligns favorably with the industry growth rate of 13.10%.
Houston-based Prairie Operating is an independent energy company engaged in the development and acquisition of proven, producing oil and natural gas resources principally in the United States. The Zacks Consensus Estimate for PROP’s 2024 earnings indicates 81.19% year-over-year growth.
Gulfport Energy is an independent natural gas and oil company focused on the exploration and development of natural gas and oil properties in North America. The Zacks Consensus Estimate for GPOR’s 2024 earnings indicates 108.53% year-over-year growth.
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