How does Eni contribute to Libya’s oil and gas production and its broader energy security?

Eni has been present in Libya since 1959 and is the leading international oil & gas company in the country. It operates in a 50-50 joint venture with the National Oil Corporation (NOC), named Mellitah Oil & Gas. In 2024, the total operated production was 403,000 barrels of oil equivalent per day.

Eni is the largest gas producer in Libya and the main supplier of gas to the local market. In 2024, Eni produced 8.5 billion cubic meters of gas, accounting for 80% of the country's gas production. Of this, 7 billion cubic meters met 70% of the domestic market's electricity generation needs, providing energy access for a capacity of over 3 GW, while approximately 1.5 billion cubic meters of gas were transported to Italy via the Greenstream pipeline.

Exploration, development and production activities are grouped into seven main contractual areas, covering a total area of about 80,000 km², including the Mediterranean offshore near Tripoli, the Sirte Basin offshore near Benghazi and the Libyan desert. In October, exploratory drilling activities began in the onshore areas of Ghadames near the Wafa Field.

Despite the challenges of recent years, the company has continued to operate and invest in Libya, thanks also to the support of the state-owned NOC, a long-standing partner. In 2023, three strategic projects were approved and are currently being executed to increase gas production for the domestic market and export to Europe, and to significantly reduce the carbon footprint of operated assets (-3.5 million tons of CO2 equivalent per year):

 

• "Structures A&E": the first major gas project developed in the country since the 2000s.
• "Bouri Gas Utilization": the project aims to zero flaring and utilization of the gas.
• "Sabratha Compression": the project maximizes gas production from the Bahr Essalam field.

In line with the United Nations Sustainable Development Goals (SDGs), Eni is engaged in initiatives to ensure the continued supply of electricity (SDG 7) by supporting the management of four power plants, which provide about 3 GW for the needs of 2 million households. Additionally, Eni is working to improve the healthcare sector (SDG 3) through direct support to healthcare facilities and training of medical personnel. Following an agreement signed in December 2023 with the International Organization for Migration, a five-year cooperation project is underway to train 850 young people facilitating access to work.

Eni has resumed onshore exploration activities in Libya after a 10-year hiatus, starting with the A1-96/3 well in the Ghadames Basin.  What are the next steps for Eni in terms of exploration activities in the country?

Over the years, Eni has consolidated its production in the country through repeated exploration successes, leading to the development of several giant fields, including Bouri and Bahr Essalam offshore and Abu Attifel and Al Wafa onshore. With a renewed portfolio of exploration projects resulting from the acquisition of operational control of large concessions previously assigned to bp, Eni has resumed exploration activities with the potential for further discoveries.

Eni operates the new exploration licenses in the onshore Ghadames Basin (Areas A and B) and the offshore Sirte Basin (Area C) through a joint venture comprising Eni North Africa (Operator) 42.5%, bp 42.5% and the Libyan Investment Authority 15%. In October, after a 10-year absence of exploration activity in the country, drilling activities began in the onshore areas of Ghadames near the Wafa Field. The proximity to existing gas infrastructures will be pivotal to a very fast time-to-market in case of discovery. In the second half of 2025, the first "ultra-deep water" exploratory well is also scheduled in Area C.

Furthermore, Eni continues to explore its historic offshore and onshore licenses in Libya leveraging existing infrastructure and ongoing gas valorization projects to reduce time to market. Specifically, an offshore well is planned in the Sabratha area in 2025, and onshore seismic acquisition in the Sirte Basin is scheduled over the four-year plan.

Eni's Structures A&E Project aims to boost gas production for both Libya and Europe. How do you view its strategic importance for Italy-Libya energy cooperation and what steps are being taken to meet its production target?

In 2023, due to a relatively stable situation, Eni and the NOC approved three strategic projects aimed at increasing gas production, both to supply the domestic market and to export gas to Europe. Those developments will also have a significantly reduced carbon footprint.

One of these three projects is "Structures A&E", approved by NOC and Eni in January 2023. It involves the development of two gas fields located in the Bahr Essalam area, in the Mediterranean sea off the coast of Tripoli, which will be connected to the existing Mellitah treatment plant. This is the first major project developed in the country since the early 2000s, and it also includes CO2 storage in the offshore Bahr Essalam field, reducing emissions by about 2 million tons of CO2 equivalent per year. The project is currently in the execution phase and foresees a phased start up contributing up to 750-million-cubic-feet-per-day production.

Engineering and construction activities for the platform dedicated to Structure A have begun. Offshore drilling activities will start in the first half of 2025, while the remaining tender packages will be awarded within the year.

The second project is the "Bouri Gas Utilization" project, approved in March 2023; it aims to reduce emissions by about 1.5 million tons of CO2 equivalent per year and utilize gas that is currently flared. The construction and installation contract was awarded in August 2023, and the project is now in the execution phase.

Finally, the "Sabratha Compression" project, which was approved in May 2023, plays a crucial role in maintaining gas production from the Bahr Essalam field and supporting the future production of the Structures A&E. Following the award of the construction and installation contract in August 2023, the project is currently in the execution phase with startup foreseen in 2025.

Additionally, Eni is actively collaborating with NOC to study and identify further opportunities to increase gas availability for the country, reduce greenhouse gas emissions, and contribute to the development of the renewable energy sector. Furthermore, in line with Eni's strategy and the Libyan government's goals to accelerate decarbonization and energy transition processes, a Memorandum of Understanding was signed with NOC in June 2023 to jointly identify opportunities for CO2 emission reductions.