Hydrocarbon reservoir structures are subjected to tectonic forces along the geological time that cause rock deformation and break into faulted zones. Faulted reservoirs, enclose certain complexity in terms of the distributed effective stresses, rock plastic alteration, slipping and fault block displacement. In this study, we develop a three-dimensional (3D) geomechanical reservoir model with faulted and compartmentalized geometry, located in the offshore deepwater environment of the Levantine basin in the Eastern Mediterranean, based on non-linear finite element analysis (FEA). A regional structural and stress map was also constructed, integrating various data sources, to present the regional stress setting to enhance this work. The assessment of the geomechanical impacts on the reservoir provides important information in reservoir studies, that can analyze potential stability issues during the depletion to optimize the field production planning. Stress–strain evolution in the reservoir is primarily affected by the in situ stresses, the geometry of faults, and the degree of compartmentalization. The results demonstrate clearly the mechanism of stress transfer transmission and the impact between the fault block compartments in the reservoir. Fault contacts exhibit a higher tendency for rock displacements and deformations. Plastic yielding develops at a narrow extent along the faults. The risk of fault slipping depends on the depletion strategy, but it is low in all cases. No significant reduction in permeability was found at the end of reservoir depletion. Overall, geomechanics integration enriches and improves the dynamic reservoir models and applications.