Claudio Descalzi, CEO of Eni, and Farhat Bengdara, Chairman of Libya’s National Oil Corporation (NOC), signed an Exploration, Production and Sharing Agreement Development (EPSA) contract in Tripoli. The US$ 8 billion agreement was formally signed by Prime Ministers of Italy, Giorgia Meloni, and Libya, Abd Alhamid Aldabaiba. T

The agreement was described as a “strategic agreement” at the signing ceremony, and the NOC also stated that the new production will be carried out through two main platforms connected to the existing processing facilities in the Mellitah complex. In accordance with Eni’s decarbonization policy, the project also calls for the development of a Carbon Capture and Storage (CCS) facility in Mellitah, allowing for a significant reduction in the overall carbon footprint.

The NOC stated that the two structures’ combined gas production will begin in 2026 and increase to 750 million standard cubic feet per day (MMscfd) of gas. The deal intends to boost gas production to satisfy both the internal Libyan market and to guarantee exports to Europe. It emphasised that the total investment will be in the range of $8 billion, having a major impact on the sector and its supply chain and allowing for a sizable contribution to the Libyan economy.

He said: “Our message as we sign this agreement is the need for international oil companies to return to their activities quickly, in accordance with the declaration of lifting force majeure in December of 2022.” He expected the production of the two fields will reach 850 million cubic feet of gas.

Without elaborating on why its execution failed, Bengdara noted that this agreement was signed in 2008 and was intended to go into effect in 2017, but it never did.

Eni CEO Descalzi, stated: “This agreement will enable significant investments in the Libyan energy sector, contribute to local development and job creation while strengthening Eni’s role as a leading operator within Libya’’.