Chevron takes Final Investment Decision on Leviathan gas expansion

Chevron Corporation (NYSE: CVX) by its subsidiary, Chevron Mediterranean Limited (CML), and the working interest owners of the Leviathan natural gas reservoir have reached a Final Investment Decision (FID) to expand the production capacity of the strategic Leviathan production platform located offshore Israel.

“Chevron is a leading energy player in the Eastern Mediterranean where we are focused on natural gas production and exports. Our operations are critical to meeting the growing energy needs of local and regional markets,” said Clay Neff, president of Chevron Upstream.

“Our decision to invest in the expansion of Leviathan’s production capacity reflects our confidence in the future of energy in the region. Pragmatic U.S. and regional energy policies are helping to strengthen energy security across the Eastern Mediterranean and foster an environment that encourages investment in the Middle East and globally.”

The Leviathan expansion project is expected to come online towards the end of this decade.

The project includes drilling three additional offshore wells, adding additional subsea infrastructure, and enhancing the treatment facilities on the Leviathan production platform as we progress towards increasing total gas delivery to Israel and the region to approximately 21 billion cubic meters (BCM) annually from the Leviathan reservoir.

“This milestone demonstrates our ongoing commitment to partner with the State of Israel to develop natural gas resources and provide essential energy to millions of people in Israel, Egypt and Jordan,” said Jack Baker, managing director of Chevron’s Eastern Mediterranean region.

The Leviathan production platform is located approximately 10 kilometers offshore Dor, Israel.

Leviathan working interest owners include Chevron Mediterranean Limited as operator (39.66%), NewMed Energy (45.34%), and Ratio Energies (15%).

In addition to Leviathan, Chevron’s assets in the Eastern Mediterranean include the Tamar gas producing field (offshore Israel), and the Aphrodite gas field which is currently in development (offshore Cyprus). Chevron is also the operator of 2 Egyptian exploration blocks and is in a non-operated joint venture (NOJV) in one Egyptian exploration block (in the Mediterranean Sea).

SOCAR Acquires 10% Stake in Baleine Oil and Gas Field Development Project

SOCAR has signed an agreement with Eni S.p.A. to acquire a 10% participating interest in the development project of the Baleine oil and gas field located offshore Côte d’Ivoire.

The Agreement was signed between SOCAR President Rovshan Najaf and Eni S.p.A. CEO Claudio Descalzi on the sidelines of the World Economic Forum Annual Meeting 2026.

This transaction represents SOCAR’s entry to Africa’s vast oil and gas resources and aligns strategically with SOCAR’s global expansion vision.

The transaction also forms part of a broader strategic collaboration between SOCAR and Eni S.p.A across various segments of the energy industry.

The implementation of this agreement and the closing of the transaction are subject to obtaining the necessary approvals from relevant regulatory authorities, as well as the fulfillment of other customary terms and conditions.

Baleine is considered one of the largest oil and gas discoveries made in West Africa in recent years. The giant offshore oil and gas field was discovered in 2021, with production commencing in 2023.

Baleine field currently produces over 62,000 barrels of oil and more than 75 million cubic feet (approximately 2.1 million cubic meters) of gas per day from Phases 1 and 2 of its development. With the launch of Phase 3, production is expected to rise to 150,000 barrels of oil and 200 million cubic feet (approximately 5.7 million cubic meters) of gas per day.

It is particularly noteworthy that Baleine is Africa’s first net-zero emissions offshore oil and gas project.

Johan Castberg strengthens Norway as a long-term energy exporter

31 March, at 10.35, the Johan Castberg oil field in the Barents Sea came on stream. The field will be producing for 30 years and bolsters Norway’s role as a reliable and long-term supplier of energy.

At peak, Johan Castberg can produce 220,000 barrels of oil per day, and recoverable volumes are estimated at between 450 and 650 million barrels.

"This is a red-letter day.The Johan Castberg field will contribute crucial energy, value creation, ripple effects and jobs for at least 30 years to come. We expect that this major field development with a price tag of NOK 86 billion (2024) will be repaid in less than two years," says Geir Tungesvik, Equinor's executive vice president for Projects, Drilling and Procurement.

12 of the 30 total wells are ready for production, and this is sufficient to bring the field up to expected plateau production in the second quarter of 2025.

"Johan Castberg opens a new region for oil recovery and will create more opportunities in the Barents Sea. We've already made new discoveries in the area and will keep exploring together with our partners. We've identified options to add 250-550 million new recoverable barrels that can be developed and produced over Johan Castberg," says Kjetil Hove, Equinor's executive vice president for Exploration & Production Norway.

The Norwegian supplier industry has accounted for more than 70 per cent of deliveries to the project during the development phase. In operation, this will increase to more than 95 per cent, with a Northern Norwegian share of more than 40 per cent. One of three employees on board the FPSO lives in Northern Norway. 84 per cent of the revenue from the field will be transferred to the Norwegian state through tax and the state's direct participating interest.

The field's supply base and helicopter base are in Hammerfest and will be operated from Equinor's office in Harstad. A total of 30 wells will be drilled on the Johan Castberg field, and drilling operations are expected to continue towards late 2026, which will yield significant activity in Hammerfest.

"Johan Castberg has been a massive and challenging project, and I want to extend my very sincere thanks to everyone who contributed on the road leading to first oil and operation, both our partners Vår Energi and Petoro, our suppliers and our own employees. 79 million hours of work have been recorded in the project, and the HSE results are very good. Now the field will produce for 30 years and generate substantial values," Tungesvik says.

Facts about Johan Castberg

• Licensees: Equinor Energy AS (operator) 46.3%, Vår Energi ASA 30%, Petoro AS 23.7%.
• The Johan Castberg field consists of the Skrugard, Havis and Drivis discoveries, which were made between 2011 and 2014.
• Location: Johan Castberg is located approx. 100 kilometres north of the Snøhvit field in the Barents Sea in blocks 7219/9 and 7220/4,5,7 approximately 150 km from Goliat and around 240 km from Melkøya. The water depth is 360-390 metres, and Skrugard and Havis are 7 km apart.
• Johan Castberg is the second oil field in the Barents Sea and Norway’s northernmost field.
• The field development is based on a production vessel tied back to an extensive subsea field with a total of 30 wells distributed between 10 well templates and two satellite structures.

FPSO Almirante Tamandaré producing and on hire

SBM Offshore announces that FPSO Almirante Tamandaré is formally on hire as of February 16, 2025 after achieving first oil and the completion of a 72-hour continuous production test leading to Final Acceptance.

FPSO Almirante Tamandaré is the largest oil producing unit in Brazil with a processing capacity of 225,000 barrels of oil and 12 million m3 of gas per day. This FPSO has an estimated greenhouse gas (GHG) emission intensity below 10 kgCO2e/boe[1] and benefits from emission reduction technologies such as the closed flare technology which increases gas utilization, preventing it from being burnt into the atmosphere. FPSO Almirante Tamandaré is the first unit in Brazil to receive a Sustainability-1 Notation[2] certification reflecting the Company’s efforts to reduce emissions over the lifecycle of the vessel.

FPSO Almirante Tamandaré is owned and operated by special purpose companies owned by affiliated companies of SBM Offshore (55%) and its partners (45%). The FPSO will operate under a 26.25-year charter and operation services contracts with Petróleo Brasileiro S.A. (Petrobras).

FPSO Almirante Tamandaré is installed at the Búzios unitized field located in the Santos Basin, approximately 180 kilometers offshore Rio de Janeiro in Brazil. The Búzios unitized field is operated by Petrobras (88.99%) in partnership with CNODC (3.67%) and CNOOC (7.34%).

TechnipFMC Awarded Major iEPCI™ Contract for Shell’s Gato do Mato Development Offshore Brazil

TechnipFMC (NYSE: FTI) has been awarded a major(1) integrated Engineering, Procurement, Construction, and Installation (iEPCI™) contract by Shell for its Gato do Mato greenfield development offshore Brazil.

In addition to integrated execution, the project will utilize Subsea 2.0® configure-to-order (CTO) subsea production systems. Combining both offerings will enable streamlined project management through a single interface and accelerate time to first oil.

Jonathan Landes, President, Subsea at TechnipFMC commented: “Throughout our 30-year partnership with Shell, we have built an overwhelmingly strong record of delivery. Our success in integrating and industrializing innovative solutions gives us the utmost confidence in providing the schedule certainty Shell requires for this flagship project offshore Brazil.”

TechnipFMC Awarded Large iEPCI™ Contract for Equinor’s Johan Sverdrup Phase 3 Offshore Norway

TechnipFMC (NYSE: FTI) has been awarded a large integrated Engineering, Procurement, Construction, and Installation contract by Equinor for the Johan Sverdrup Phase 3 development in the Norwegian North Sea.

The Johan Sverdrup field, which originally began production in 2019, is now one of the largest developments in the region. This latest phase will increase production by tying in additional wells to the current infrastructure, which is powered by low-emission resources onshore.

Jonathan Landes, President, Subsea at TechnipFMC commented: “It is a privilege to contribute once again to the development of this field, where we delivered subsea production systems for each of the previous phases. We are excited to leverage our integrated execution model to further enhance this world-class offshore asset.”

This direct award follows an integrated Front End Engineering and Design study. TechnipFMC will design, manufacture, and install subsea production systems, umbilicals, and rigid pipe that will tie new templates into the existing Johan Sverdrup field center.

Shell starts up new facility in UK North Sea, restoring production from the Penguins field

Shell has restarted production at the Penguins field in the UK North Sea with a modern floating, production, storage and offloading (FPSO) facility (Shell 50%, operator; NEO Energy 50%). The previous export route for this field was via the Brent Charlie platform, which ceased production in 2021 and is being decommissioned.

Peak production is estimated at around 45,000 barrels of oil equivalent per day (boe/d) and currently has an estimated discovered recoverable resource volume of approximately 100 million boe. Although primarily oil production, Penguins will also produce enough gas to heat around 700,000 UK homes per year.

The new FPSO will have around 30% lower operational emissions compared with Brent Charlie and is expected to extend the life of this important field by up to 20 years.

“Today, the UK relies on imports to meet much of its demand for oil and gas,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “The Penguins field is a source of the secure domestic energy production people need today, and the FPSO is a demonstration of our investment in competitive projects that create more value with less emissions.”

Although oil will be transported by tanker to refineries outside of the UK, these include ones that supply refined products like petrol and diesel back to the UK because of its limited refining capacity.

Natural gas will be transported through the existing pipeline to the St Fergus gas terminal in the north-east of Scotland, which supplies the UK’s national gas network.

The redevelopment of the Penguins field has involved drilling additional wells, which are tied back to the new FPSO. The field is in 165 metres (541 feet) of water depth, around 150 miles north-east of the Shetland Islands. Discovered in 1974, the field previously produced oil and gas between 2003 and 2021.

Notes to editors

• The Penguins FPSO is operated by Shell U.K. Limited, which is a subsidiary of Shell plc. As announced on December 5 2024, Shell U.K. Limited and Equinor UK Ltd are to combine their UK offshore oil and gas assets and expertise to form a new company which will be the UK North Sea’s biggest independent producer. On deal completion, the new independent producer will be jointly owned by Equinor (50%) and Shell (50%). The joint venture will take on Shell’s equity interests in Penguins.
• The Penguins FPSO was built by Sevan – a technology, design and engineering company based in Norway – and is the first new Shell-operated facility in the UK North Sea for over 20 years. It is a compact facility with a cylindrical hull design, providing more efficiency and flexibility. It has a flareless system, which recycles vapour back into the tanks and reduces emissions.
• According to the UK regulator, the North Sea Transition Authority, production of oil and gas has declined by 11% in the last year (Source: NSTA) and UK production is falling faster than demand (Source: DESNZ).
• The estimated peak production and current estimated recoverable resources presented above are 100% total gross figures.
• Current estimated discovered recoverable resource volumes of this development are approximately 100 million boe. The estimate of resource volumes is currently classified as 2P (the sum of proved reserves plus probable reserves) and 2C (the best estimate scenario of contingent resources) under the Society of Petroleum Engineers’ Resource Classification System.
• On Shell’s Capital Market Day in 2023, Shell committed to deliver upstream and integrated gas projects coming on stream between 2023 to 2025 with a total peak production of greater than 500,000 barrels of oil equivalent per day. Penguins is expected to contribute to this commitment.
• Our target is to become a net-zero emissions energy business by 2050. By the end of 2023, we had achieved more than 60% of our target to halve emissions from our operations (Scopes 1 and 2) by 2030, compared with 2016.