TheCable

Eni, an Italian oil and gas firm, has signed an $8 billion offshore gas development deal with state-owned Oil Corporation of Libya (NOC).

Claudio Descalzi, chief executive officer (CEO), Eni; and Farhat Bengdara CEO, NOC, signed the agreement on the development of ‘structures A&E’, a strategic project aimed at increasing gas production to supply the Libyan domestic market as well as to ensure export to Europe.

The agreement was signed in the presence of Giorgia Meloni, prime minister of Italy; and Abdul Hamid Al-Dbeibah, prime minister of the Libyan government of national unity, according to a recent statement issued by Eni.

“Structures A&E is the first major project in the country since the early 2000. It consists of the development of two gas fields, namely Structures ‘A’and ‘E’, located in the contractual area D, offshore Libya,” the statement reads.

Eni said the combined gas production from the two structures will start in 2026 and reach a plateau of 750 million standard gas cubic feet per day.

“Production will be ensured through two main platforms tied-in to the existing treatment facilities at the Mellitah Complex,” it said.

“The project also includes the construction of a Carbon Capture and Storage (CCS) facility at Mellitah, allowing a significant reduction of the overall carbon footprint, in line with Eni’s decarboniastion strategy.

“The overall estimated investment will amount to 8 billion USD, with significant impact on the industry and the associated supply chain, allowing a significant contribution to the Libyan economy.”

Speaking on the development, Descalzi said the agreement will enable important investments in Libya’s energy sector, contributing to local development and job creation while strengthening Eni’s role “as a leading operator in the country”.

Meanwhile, Libya was awarded the gas development contract despite the political unrest and insecurity in the northern Africa country.

Since the NATO-supported revolt that toppled Muammar Gaddafi in 2011, Libya has been in chaos, and many armed factions now control large portions of the nation.