Petroleum Africa
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Tuesday, January 31, 2023
Eni and the National Oil Corporation of Libya (NOC) have both confirmed a deal 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. This deal was mentioned last week and was confirmed on January 29.
Libyan authorities have been diligently working to secure major investments into their petroleum industry which has suffered ever since the civil war in 2011 with ongoing political instability, rival governments, and attacks on its oil infrastructure. Despite this, the country has managed to increase production significantly over the past year and is aiming to reach 1.6 million barrels per day.
Eni CEO Claudio Descalzi, and the CEO of the NOC, Farhat Bengdara, represented each side and the agreement was signed in the presence of the Prime Minister of Italy, Giorgia Meloni, and the Prime Minister of the Libyan Government of National Unity, Abdul Hamid Al-Dbeibah.
“Structures A&E” is the first major project in the country since the early 2000s. It consists of the development of two gas fields, namely Structures “A” and “E”, located in the contractual area D, offshore Libya. The combined gas production from the two structures will start in 2026 and reach a plateau of 750 million standard cubic feet of gas per day.
According to an Eni release, production will be ensured through two main platforms tied-in to the existing treatment facilities at the Mellitah Complex. 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 decarbonization strategy. The overall estimated investment will amount to $8 billion, with a significant impact on the industry and the associated supply chain, allowing a significant contribution to the Libyan economy.
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