Hanwha Ocean (042660) has secured a module fabrication contract for the Leviathan expansion project, an offshore gas field in Israel, from global energy giant Chevron. However, the celebration was tempered when an operational shutdown order was issued for the Leviathan gas field following U.S. and Israeli airstrikes on Iran, shortly after the contract announcement.
According to industry sources on the 3rd, Chevron Mediterranean, a subsidiary of U.S.-based Chevron, recently selected Hanwha Ocean as the module fabrication contractor for the Leviathan expansion project. The project aims to increase gas production by fabricating and installing additional modules on the existing Leviathan production platform located in Israeli waters.
Hanwha Ocean has been supporting Chevron since 2024, participating in the development phase including constructability reviews for the project. With this contract, Hanwha Ocean is expected to play a pivotal role in meeting growing energy demand in the local and regional markets. The Leviathan gas field's annual gas supply capacity is projected to increase from 12 billion cubic meters to approximately 21 billion cubic meters through this expansion.
"We are committed to safe and successful execution, and will strengthen our long-term partnership with Chevron," said Philip Levy, President and Head of Energy Plant Business Division at Hanwha Ocean.
The Leviathan consortium comprises operator Chevron (39.66% stake), NewMed Energy (45.34%), and Ratio Energetics (15%). In January, the consortium announced an additional $2.3 billion investment to boost gas field output, planning to commence operations before 2030 following three additional offshore drilling operations and substructure installations.
Meanwhile, Chevron has temporarily suspended operations at the Leviathan gas field amid the conflict between the United States and Iran. The suspension reportedly followed an order from Israel's Energy Ministry to Chevron, in accordance with security authority guidelines issued the previous day.
Hanwha Ocean explained that the operational suspension would not immediately impact the project. "The Leviathan platform is scheduled for on-site installation in the first quarter of 2028, leaving considerable time in the construction period," the company said. "We are monitoring the situation and analyzing the impact on future contract plans."