Chevron, the U.S. energy giant, is reportedly looking to lease a drill ship to explore for natural gas off the coasts of Cyprus, Egypt and Israel. According to two unnamed sources cited by Reuters, the company has issued a bid for a drillship in 2024 with an option to extend for several years.
Chevron is committed to working with governments and partners in the region
The company is currently operating in these three Eastern Mediterranean countries and wishes to meet the growing demand in the region and in Europe. A Chevron spokesperson declined to comment on the bid, but stressed the company’s commitment to working with the governments of Egypt, Israel and Cyprus, as well as its partners in the region, to support the growth of the energy sector in the Eastern Mediterranean.
The Eastern Mediterranean is full of energy resources. Chevron aims to accelerate the development of the Aphrodite gas field located in southeastern Cyprus, which is estimated to contain about 4.5 trillion cubic meters of gas. The company also operates the Leviathan field offshore Israel, which produces 12 billion cubic meters of gas per year, supplying Israel, Egypt and Jordan.
Exploration of new resources in the Eastern Mediterranean
Chevron and its Leviathan partners, NewMed Energy and Ratio Energies, plan to nearly double the field’s production to 21 to 24 billion cubic meters by 2027. They also plan to build a floating liquefied natural gas facility to export the fuel to international markets, including Europe.
In Egypt, Chevron and its partner Eni discovered gas in the Nargis offshore concession earlier this year, which they intend to explore further, the sources said.
The development of new resources in the Eastern Mediterranean follows growing demand in Europe since Moscow’s invasion of Ukraine in February 2022, which prompted a shift in Russian energy.
Chevron became a major gas producer in the Eastern Mediterranean basin in 2020 after acquiring Noble Energy for $5 billion. The company spokesperson believes that the region’s abundant energy resources have the potential to improve energy security both regionally and internationally.
