Israel Moves to Exempt Chevron Gas Platforms from Local Standards Amid Environmental Backlash
Israel's Ministry of Economy is advancing a broad regulatory exemption for Chevron's Leviathan and Tamar gas platforms, sparking fierce pushback from environmental groups warning of compromised safety standards.
The Ministry of Economy is advancing a draft order that would grant Chevron's Leviathan and Tamar offshore natural gas reservoirs an extensive exemption from Israeli standards for marine gas exploration, development, and production. Chevron holds a 40% stake in Leviathan, a 25% stake in Tamar, and operates both fields. The order is tailored specifically to these two platforms following a request submitted to the commissioner, but it will also be extended to other companies that apply to the Ministry of Economy.
The decree grants a broad exemption without time limits, including for the maintenance of already operational platforms. The petroleum commissioner will be authorized to instruct companies to merely provide a declaration that they are "complying with requirements," without Israeli regulators requiring them to meet equivalent standards in another country. Environmental organizations warn that the current order is too sweeping and lacks factual and professional backing, calling for it to be rejected.
Rationale and Regulatory Hurdles
According to the Ministry of Economy, the purpose of the order is to prevent import difficulties and regulatory duplication, while ensuring the continued safe and proper operation of the platforms. The order specifies that the operator will be required to meet requirements set by the petroleum commissioner at the Ministry of Energy "to ensure, as far as possible, that public safety, security, and environmental quality are maintained." To this end, companies may rely solely on an operator's declaration of compliance.
An offshore platform is a complex engineering structure comprising a wide range of specialized equipment and systems, including pressure vessels, steam boilers, lifting equipment, pipes, valves, and other engineering gear. This equipment is often manufactured specifically for the platform or marine facility in accordance with its unique characteristics and the operational requirements of exploration and production.
The Ministry of Economy argues that the order aims to prevent regulatory duplication, since certain equipment might not comply with official Israeli standards yet was manufactured in accordance with globally accepted industry standards. Nonetheless, the order does not require proof of actual compliance with international standards.
Environmental Warnings and Criticism
Environmental organizations Adam Teva V'Din and Shomrei HaBayit demand that the Ministry of Economy halt the advancement of the order in its current format, warning against a sweeping exemption that could ultimately jeopardize public safety and the environment. They argue that while avoiding regulatory duplication may justify targeted arrangements for equipment meeting international standards, it does not justify a blanket exemption or the weakening of public safety safeguards.
"An operator's declaration cannot substitute for an independent professional examination of critical equipment," environmental organizations emphasize.
A 2020 report commissioned by the Ministry of Energy found significant gaps in Leviathan platform safety and international standards compliance. Adam Teva V'Din points out that the order substantially lowers the protection threshold set by the legislature by allowing operators to protect safety and environmental quality "as far as possible" — meaning subject to convenience or feasibility considerations.
Official Responses from Government and Chevron
The Ministry of Economy stated: "The ministry is working to implement the provisions of the Standards Law amendment recently approved by the Knesset, which establishes a mechanism for granting exemptions from official standard requirements for gas platform components, subject to statutory conditions. The law stipulates that granting an exemption is conditional upon the consent of the Minister of Energy and Infrastructure and the approval of the petroleum commissioner."
The Ministry of Environmental Protection noted: "The ministry requires operators to use equipment that complies with various standards, in order to ensure compliance with environmental protection requirements and minimize environmental impacts resulting from platform operations."
Chevron stated: "We are committed to operating safely and responsibly, and we take pride in our proven track record and procedures reflecting our commitment to protecting people, our assets, and the environment. We conduct our operations with social and environmental responsibility. Top priority is given to the safety and health of our employees, and to protecting communities, the environment, and our assets. The Ministry of Energy confirmed in 2021 that following the 2020 inspection, all requirements presented to Chevron were fully addressed and implemented."
