On January 28th, Italian energy company Eni and the Libyan National Oil Corporation (NOC) signed a strategic agreement for the development of offshore gas deposits in western Libyan waters. The estimated value of the deal is around $8 billion and is considered to be the single most important investment in the Libyan hydrocarbon sector since the overthrow of Muammar Gaddafi in 2011.
The agreement was signed during a government mission led by Italian Prime Minister Giorgia Meloni, which also included the participation of the Minister of Foreign Affairs, Antonio Tajani, and the Minister of the Interior, Matteo Piantedosi. According to the NOC, the deal is expected to produce up to 850 million cubic feet of gas per day from the Mediterranean, which is triple the current imports of gas to Italy from Libya. This is a significant development as it will help to meet the growing demand for gas in Europe, following a decrease in supplies from Russia due to the ongoing conflict in Ukraine.
The NOC had previously announced in December 2021, that the negotiations with Eni had been focused on the A and E exploration areas of Block NC41. The first area is located in the central part of the block, about 75 kilometers from the Libyan coast, at a water depth between 93 and 145 meters, while the second area is located in the central-eastern part of the block, about 125 kilometers from the Libyan coast, at a water depth between 205 and 235 meters. The NOC also explained in a press release that the project was necessary as production of gas from the Al Wafa and Bahr Essalam fields will start to decline in 2025 by over 440 million cubic feet of gas per day, which would result in a deficit in gas supply for domestic consumption.
This strategic energy agreement is also in line with the “Mattei Plan” launched by Prime Minister Meloni, which aims to deepen political and energy ties between Italy and the African continent. The deal is expected to attract new investors in the oil and gas industry and boost the Libyan economy. This is a significant development as it will increase the energy security of Italy and Europe, while also helping to stabilize the political situation in Libya.
[…] The recent agreement signed between Italian energy company Eni and the Libyan National Oil Corporation (NOC) for the development of offshore gas deposits in western Libyan waters is a significant development in the Euro-Mediterranean energy landscape. The estimated value of the deal, worth around $8 billion, is considered to be the single most important investment in the Libyan hydrocarbon sector since the overthrow of Muammar Gaddafi in 2011. […]