War Shuts Israel's Biggest Gas Field. Chevron Is Still Building It Bigger
By Bosphorus News Energy Desk
Leviathan and Karish Go Dark
Israel ordered the shutdown of its two largest offshore gas fields, Leviathan and Karish, on March 2, following US-Israeli strikes on Iran and Tehran's retaliatory attacks. The closures were described as precautionary. Israel's energy ministry issued the directive citing the "recent geopolitical escalation in the region." Leviathan operator Chevron declared force majeure, a formal notice that it cannot fulfil some contract obligations due to events beyond its control.
The timing is significant. It is the second closure in less than a year. Israel shut the same fields in June 2025 during the 12-day war with Iran, cutting off gas exports to Egypt and forcing Cairo to halt supplies to fertilizer producers and ramp up diesel use in power generation.
Leviathan, operated by Chevron with a 39.66% stake alongside NewMed Energy and Ratio Energies, produces around 12 billion cubic meters of gas per year. It is contracted to supply approximately 4.5 billion cubic meters annually to Egypt. A $35 billion supply deal signed last year would see 130 billion cubic meters delivered to Egypt between 2026 and 2040. Karish, operated by Greek firm Energean, feeds the Israeli domestic market.
The Iran Revolutionary Guard Corps added a new dimension on March 12, when its Aerospace Force commander Majid Mousavi threatened on X to strike both fields. "On our list of targets are the Leviathan and Karish fields, as well as dozens of other facilities," Mousavi wrote. "Each new mistake by the enemy will cost it the opening of another front."
Chevron Presses Ahead on Expansion
Despite the shutdown, Chevron and its partners are not pulling back from the Eastern Mediterranean. The company took a final investment decision in January 2026 to expand Leviathan's production platform, committing $2.3 billion to a project expected to raise annual gas delivery capacity from 12 billion to 21 billion cubic meters.
On March 5, Chevron awarded South Korean shipbuilder Hanwha Ocean the module fabrication contract for the expansion. The project involves three additional offshore wells, new subsea infrastructure, and upgraded treatment facilities on the platform, with operations expected before 2030.
"Our decision to invest in the expansion of Leviathan's production capacity reflects our confidence in the future of energy in the region," Chevron said in its official FID statement in January.
In Greece, Chevron has also secured four offshore exploration blocks south of Crete and the Peloponnese, in partnership with HELLENiQ Energy, following an award confirmed in February. Subsea7 has been contracted for flowline and umbilical installation work in the Eastern Mediterranean, with offshore execution scheduled for 2028.
Türkiye Moves on Multiple Fronts
Türkiye's state energy company TPAO is pursuing a parallel expansion track. In February, Chevron and TPAO signed an agreement to jointly pursue global oil and gas exploration and production opportunities, the first formal partnership of its kind between the US major and the Turkish state operator.
TPAO is also preparing to issue up to $4 billion in Islamic debt, known as sukuk, to accelerate production growth. The financing is targeted at Black Sea gas expansion, unconventional development in southeast Türkiye, and international projects in Libya, Oman, and Pakistan.
Subsea7 and Baker Hughes have both secured major contracts for Phase 3 of the Sakarya Gas Field in the Black Sea, one of the most technically demanding ultra-deepwater projects in the region, in water depths exceeding 2,000 metres. Tenaris has also been awarded ultra-deepwater contracts for the same phase.
Lebanon Opens a New Frontier
Away from the conflict zone, TotalEnergies, Eni, and QatarEnergy signed an agreement with Lebanon in January to enter the Block 8 offshore exploration permit, with plans for new 3D seismic acquisition. Lebanon's offshore resources have long been dormant due to political instability and unresolved maritime boundary disputes. The entry of three majors signals renewed appetite for frontier acreage in the basin.
The conflict has placed every one of these projects under a new layer of risk. With the Strait of Hormuz effectively closed, Mediterranean supply routes and Eastern Mediterranean production assets have moved from supporting infrastructure to frontline exposure.