Hanwha Ocean’s Leviathan Gas Field Project faces unforeseen suspension

Hanwha Ocean Hit by ‘Operations Suspension’ Bolt from the Blue Right After Winning Israel Gas Field Project

Hanwha Ocean has secured a module fabrication contract for the ‘Leviathan Expansion Project,’ an offshore gas field in Israel, from global energy company Chevron. However, immediately after the contract news was announced, attention is being drawn to whether the project schedule will be affected, as Israel ordered a suspension of operations at the Leviathan gas field in the wake of the U.S. and Israeli airstrikes on Iran.According to industry sources on March 3, Chevron Mediterranean, a subsidiary of Chevron, recently selected Hanwha Ocean as the module fabrication contractor for the Leviathan Expansion Project. This project involves fabricating and installing additional modules on the existing Leviathan production platform located offshore Israel to increase gas production.

Hanwha Ocean has been supporting Chevron by participating in the development phase, including constructability reviews, since 2024. With this successful contract win, Hanwha Ocean is expected to play a key role in meeting the growing energy demand in the local and regional markets. The annual gas delivery capacity of the Leviathan gas field is expected to increase from the existing 12 billion ㎥ to approximately 21 billion ㎥ through this expansion. Philip Levy, President of Hanwha Ocean’s Energy Plant Business Unit, stated, “We will strengthen our long-term partnership with Chevron by committing to safe and successful execution.”

The Leviathan consortium consists of operator Chevron (39.66% stake), NewMed Energy (45.34%), and Ratio Energetics (15%). In January, the consortium made a final investment decision (FID) of $2.3 billion to increase gas field output and plans to commence operations before 2030 following three additional offshore drillings and installation of substructures.

Meanwhile, Chevron has temporarily suspended operations at the Leviathan gas field due to the U.S. and Israeli airstrikes on Iran and Iran’s retaliation. According to foreign media reports, Israel’s Ministry of Energy ordered Chevron to suspend operations at the Leviathan gas field the previous day in accordance with security authority guidelines. It is reported that this includes adjusting operations according to changes in the security situation and the possibility of temporary production suspension depending on how the situation unfolds.

In response, Hanwha Ocean maintains that this operational suspension has no immediate impact on the business. Hanwha Ocean explained, “The Leviathan platform is scheduled for on-site installation in the first quarter of 2028, so there is still a considerable construction period remaining,” adding, “There is no immediate impact.” The company also stated, “We are monitoring the situation and analyzing the impact on future contract plans.”

Source: BusinessKorea