Libya inks new oil deal worth $8 billion with Italian firm

TRIPOLI, Libya - Italian energy company Eni and Libya's National Oil Corporation (NOC) have inked a new gas production deal worth $8 billion with the Eni-Italian energy firm.

This new deal will enable the Libyan government to supply Europe with the much-needed gas despite the insecurity and political chaos.

Italian Prime Minister Giorgia Meloni visited Libya with an aim to increase gas output for the Libyan domestic market as well as exports, through the development of two offshore gas fields.

As per the Italian premier, it's expected that the output will begin in 2026 and reach a plateau of 750 million cubic feet per day.

"This agreement will enable important investments in Libya's energy sector, contributing to local development and job creation while strengthening Eni's role as a leading operator in the country," said its chief executive, Claudio Descalzi.

Meloni met Libya's Prime Minister Abdulhamid Al-Dbeibah, head of the internationally recognized Government of National Unity (GNU) in Tripoli for talks that also focused on migration across the Mediterranean.

At a joint news conference with Descalzi, the NOC chief, Farhat Bengdara, said the gas deal had a duration of 25 years and called it the most important new investment in Libya's energy sector for a quarter of a century.

European countries have increasingly sought to replace Russian gas with energy supplies from North Africa and elsewhere over the past year because of the war in Ukraine.

Italy has already taken a lead in sourcing gas from Algeria, building a new strategic partnership there that includes investment to help state energy company Sonatrach reverse years of declining output.

However, this new deal reached between Italy and Libya in Tripoli may be undermined by Libya's internal conflict, which has divided the country between rival factions who vie for control of government and dispute each other's claims to political legitimacy.

GAROWE ONLINE