Chevron to stop production in Mediterranean off Israel Coast

AP , Monday 9 Oct 2023

American oil giant Chevron Corp. said Monday that at Israel’s instruction, it had stopped production at its offshore Tamar natural gas rig in the Mediterranean Sea off Israel.

Tamar gas rig
The Tamar gas rig, located 23 kilometers (14 miles) west of the city of Haifa in northern Israel. AP


In a statement announcing the action, the company declined to discuss any security issues and didn't say why Israel ordered it.

“Chevron is focused on the safe and reliable supply of natural gas for the benefit of the Israeli domestic market and our regional customers,” Chevron said. “Our top priority is the safety of our personnel, the communities in which we operate, the environment, and our facilities.”

The Tamar field, which went online in 2013, is believed to hold more than 300 billion cubic meters of gas. Chevron and the Israeli-American company Isramco each own around a third of Tamar, with the remainder held by smaller firms.

There have been threats previously against Israel’s offshore oil rigs by militant groups in the region and Lebanon has disputed Israel’s maritime boundaries.

The ongoing fighting in Israel and the Gaza Strip has sparked a jump in crude oil prices, in part over a fear of a wider regional conflict breaking out.

Israel and the Palestinian territories don’t produce oil. Benchmark Brent crude traded up Monday to over $87 a barrel.

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