Chevron(US:CVX) ZACKSยท2025-02-26 12:25Core Viewpoint - Chevron Corporation (CVX) and its partners have submitted a $2.4 billion expansion plan for the Leviathan offshore natural gas project in Israel, aimed at increasing production capacity and enhancing infrastructure [1][5]. Group 1: Expansion Plan Details - The expansion, referred to as Phase 1B, consists of two stages, with the first stage involving the drilling of three additional production wells and upgrades to subsea infrastructure and offshore processing facilities, expected to raise production capacity to 21 billion cubic meters (bcm) per year [2]. - The Leviathan field, which began production in 2019, currently produces 12 bcm annually, with plans to increase this to approximately 14 bcm by 2026 through the addition of a third pipeline [3]. - The second stage of the expansion includes further well drilling and the installation of a fourth pipeline, potentially increasing daily production capacity by 2 bcm, leading to a total of 23 bcm annually [3]. Group 2: Financial and Strategic Implications - NewMed, a partner in the Leviathan project, has approved a budget of $505 million for equipment purchases related to the expansion [4]. - The project aims not only to boost domestic supply but also to expand natural gas exports, with plans to secure regulatory approvals and new supply agreements for over 100 bcm of natural gas [5]. - The Leviathan project is recognized as one of the largest deepwater natural gas fields globally, with significant hydrocarbon resources, including a 40% increase in natural gas reserves over the past decade [6].