Eni formalizes the expected agreements with Libya, worth 8 billion.
The Italian energy group thus confirms the expectations of the day before, for the mission in the divided country led by Prime Minister Giorgia Meloni who defined the contract as “historic”. Eni’s CEO Claudio signed the agreements Descalziand the counterpart of the National Oil Corporation (NOC), the Libyan major, Farhat Bengdara. The detail plans to start the development of “A&E Structures”, a “strategic project aimed at increasing gas production to supply the Libyan domestic market, as well as guaranteeing the export of volumes to Europe”, reads a note. In addition to Meloni, the Prime Minister, Minister of the Government of Libyan National Unity, Abdul Hamid was present Al-Dbeibah.
Eight billion investments between the giants Eni and Noc to extract methane from the Libyan sea
by Andrea Greco
“Structure A&E” is the first major project to be developed in the country since the beginning of 2000. It consists of two gas fields, called “Structure A” and “Structure E” respectively, located in Contract Area D, off the coast of Libya . Gas production will begin in 2026 and will reach a plateau of 750 million cubic feet of standard gas per day, the Six-Legged Dog details.
These are the two fields of the Nc 41 marine block, about a hundred kilometers from Tripoli and with estimated reserves of 170 billion cubic meters of gas. By investing $8 billion, Eni ensures production “through two main platforms connected to existing treatment plants at the Mellitah complex. The project also includes the construction of a carbon dioxide capture and storage (CCS) facility in Mellitah, which will allow a significant reduction of the overall carbon footprint, in line with Eni’s decarbonization strategy”.
The Italian company also underlines the “significant” impact expected from the investment “on the industry and its supply chain, providing a significant contribution to the Libyan economy”. Meloni recalled that ENI has been in the country since 1959 and has contributed to the country’s history. The agreement has a duration of forty years: it will take three and a half years for the extraction of the gas already discovered. From that moment, Eni will recover the investment by retaining 38% of the volumes extracted for 15 years, then Eni’s share of gas will drop to 30% for the remaining 25 years. Net of imported gas, the remainder will serve the Libyan plants making the group led by Descalzi the leading supplier of gas for Libyan internal consumption. About a third of the gas retained by Eni will instead be able to flow into the GreenStream submarine gas pipeline, built twenty years ago and 50% owned by Eni and Noc, and boost exports.
In the note that formalized the agreement, Descalzi declared: “Today’s agreement will allow for important investments to be made in the energy sector in Libya, contributing to the development and job creation in the country, and strengthening Eni’s position as first operator in Libya”. There, Eni has an 80% share of national production.