Security Fears Force Chevron to Halt Production at Israel's Leviathan Gas Field
In a move underscoring the fragility of Eastern Mediterranean energy supplies, Chevron has declared force majeure and halted production at Israel's flagship Leviathan natural gas field. The suspension comes on direct orders from the Israeli Energy Ministry, citing immediate security threats in the wake of recent joint US-Israeli military strikes against Iran and anticipated retaliatory actions across the region.
The Commissioner of Petroleum Affairs has been empowered to issue further operational directives as security assessments evolve. Chevron has been formally notified to prepare for a flexible operating regime at Leviathan, which could involve intermittent production stops based on real-time threat evaluations.
This shutdown marks the second significant disruption to the field's operations in less than twelve months, each linked to hostilities involving Iran. The previous incident saw both Leviathan and the nearby Karish field taken offline, leading to downstream gas rationing for Egyptian industries, including fertilizer plants.
Located 130 kilometers off the coast of Haifa in the Levantine Basin, the deepwater Leviathan field is Israel's single largest source of natural gas and a critical energy pillar for the region. It feeds the domestic Israeli market and fulfills substantial export contracts with Egypt and Jordan. In the first three quarters of 2025 alone, it supplied 8.1 billion cubic meters (bcm) of gas, with over half (4.8 bcm) destined for Egypt.
The field's strategic importance is immense. It holds an estimated 22.9 trillion cubic feet of recoverable gas and is central to a $35 billion export agreement with Egypt stretching to 2040. Just recently, the operating consortium greenlit a $2.3 billion expansion project designed to boost Leviathan's annual capacity from 12 bcm to around 21 bcm.
In a related development, Energean confirmed it received similar instructions from the Ministry to stop production at its Karish field floating LNG unit, indicating a broader security-driven pause across Israel's offshore energy sector.
Industry Reaction:
"This is a prudent, if painful, safety measure," said David Chen, an energy analyst at Horizon Consultancy. "The infrastructure is exposed. The precedent from last year shows how quickly these geopolitical flashpoints can translate into operational shutdowns and regional supply crunches."
"It's a stark reminder that our energy security is held hostage by regional conflicts," stated Layla Al-Mansour, a Amman-based economist. "Jordan and Egypt have built long-term plans around this gas. Every disruption forces costly switches to alternatives and fuels economic uncertainty for millions."
"It's an absolute farce," blasted Mark Russo, a former pipeline engineer and frequent industry commentator. "Billions invested, long-term contracts signed, and the whole operation gets switched off because politicians can't de-escalate. This isn't risk management; it's an admission that the entire project sits in a permanent danger zone. So much for stable energy partnerships."
Chevron operates Leviathan with a 39.66% stake through its Chevron Mediterranean subsidiary. Israeli partners NewMed Energy (Delek Group) and Ratio Energies hold 45.34% and 15% interests, respectively.