Chevron Ordered to Halt Leviathan Gas Production Amid Rising Tensions

Chevron Corporation CVX has declared force majeure at the Leviathan natural gas field after Israel’s government ordered a temporary production halt on security grounds. The move follows escalating regional tensions, including joint U.S.-Israeli strikes on Iran and retaliatory developments across the region. This marks the second disruption in less than a year impacting Eastern Mediterranean gas flows.

The Leviathan field, Israel’s largest offshore gas reservoir, is operated by Chevron Mediterranean Limited with a 39.66% stake. Other key partners include NewMed Energy (45.34%) and Ratio Energies (15%).

Regional Energy Supply Disrupted

With Leviathan offline, a significant share of Israel’s gas export capacity has been effectively frozen. The field is a cornerstone of energy supply to Israel, Egypt and Jordan.

Israel’s Leviathan gas field is its most significant energy asset, containing an estimated 22.9 trillion cubic feet of recoverable natural gas. Since commencing production, Leviathan has played a key role in positioning Israel as a regional energy powerhouse. In 2025, Egypt accounted for the largest volume supply, underscoring its dependence on Israeli supply.

The suspension echoes a similar shutdown in June during earlier hostilities. That disruption forced Egypt to curtail gas supplies to certain industries, including fertilizer manufacturers. Analysts now anticipate Cairo may once again ramp up LNG imports to compensate for the lost Israeli volumes.

Meanwhile, Energean confirmed that production at the Karish field has also been suspended under regulatory direction, further tightening regional gas availability.

Expansion Plans Face Uncertain Backdrop

The timing of the shutdown is particularly notable. The Leviathan consortium recently approved a $2.3 billion first-phase expansion aimed at boosting annual production capacity from around 12 billion cubic meters (Bcm) to approximately 21 Bcm.

The project included drilling three additional offshore wells, installing new subsea infrastructure and upgrading processing facilities on the production platform.

Located nearly 10 kilometers off the coast of Dor, Israel, the Leviathan platform plays a critical role in strengthening domestic supply and expanding regional exports. The expansion was expected to be completed by 2030.

Strategic Importance to Regional Energy Security

Chevron continues to invest in Eastern Mediterranean operations to support long-term energy security. Increased capacity from Leviathan is intended to meet growing domestic demand in Israel while reinforcing export commitments to Egypt and Jordan.

However, recurring geopolitical disruptions highlight the vulnerability of critical offshore infrastructure in a volatile region. While the expansion project aims to enhance supply resilience, the current shutdown underscores the delicate balance between energy development and regional security dynamics.

As tensions evolve, the trajectory of Leviathan’s production — and its broader impact on Eastern Mediterranean gas markets — remains closely watched.

CVX’s Zacks Rank & Key Picks

Houston, TX-based Chevron is one of the largest publicly traded oil and gas companies, participating in every aspect of the energy sector, from oil production to refining and marketing. Currently, CVX carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may consider some top-ranked stocks like Archrock, Inc. AROC, TechnipFMC plc FTI and Oceaneering International, Inc. OII. While Archrock and TechnipFMC sport a Zacks Rank #1 (Strong Buy) each at present, Oceaneering International carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Archrock started as a broader energy services provider but has steadily refocused its business to become a premier compression services company, primarily supporting natural gas production, processing and transportation. The Zacks Consensus Estimate for AROC’s 2026 earnings indicates 5.8% year-over-year growth.

Newcastle & Houston-based TechnipFMC plc is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry. The Zacks Consensus Estimate for FTI’s 2026 earnings indicates 13.9% year-over-year growth.

Houston, TX-based Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry. OII’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an average positive surprise of 17.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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