Libya Signs $8 Billion Gas Deal
In late January, Farhat Bengdara, the CEO of the National Oil Corporation (NOC) of Libya and Claudio Descalzi, the head of Eni, inked an agreement for the development of the Structures A&E project with the aim to increase the supply of gas to meet demand both locally and across the European market. The $8 billion project marks the first major project in Libya since 2000 and will see the development of two offshore gas fields. Once operational in 2026, the project will add 750 million standard cubic feet of gas per day to Libya’s energy output portfolio.
NOC Unveils Industry Expansion Plan
In February, the NOC, in partnership with US engineering and advisory firm KBR unveiled a strategic plan aimed at revitalizing the oil and gas sector. Some new gas blocks will be offered for exploration for the first time in 17 years as part of the plan. Following the launch of the plan, Eni, TotalEnergies and United Arab Emirates-based company ADNOC kickstarted conversations with the Libyan government to launch exploration activities in the country.
Contract Awarded for Gas Refinery
In March, Zallaf for Oil and Gas – a subsidiary of the NOC – awarded American multinational conglomerate Honeywell a contract for engineering works for the South Refinery project. Once complete, the $600 million project will supply cooking gas, jet fuel and other petroleum products to the local, regional and international markets.
Libya Inks Emissions Reduction and Production Maximization Deal
On 7 June, Abulhamid Dabaiba, Libya’s Prime Minister, signed a Memorandum of Understanding with Eni to enhance cooperation regarding the reduction of gas flaring and the identification of additional gas resources from existing fields. The agreement falls under efforts by Libya to accelerate decarbonization and emissions reduction through the sustainable development gas resources.
Government Orders Mapping of Untapped Gas Resources
In early July, Mohamed Aoun, Libya’s Minister of Oil and Gas, announced that the Ministry had mandated the NOC to conduct an extensive mapping out of the country’s hydrocarbon reserves.
Libya’s recent discovery of 12 new gas fields highlights the need for comprehensive mapping of untapped gas territories ahead of the planned 2024 licensing round. With 40% of the country’s oil and gas territories not yet mapped, the mapping is expected to help unlock Libya’s full energy potential.
Eni Lifts Force Majeure on Gas Fields
On 3 August, Eni revoked force majeure status on three oil and gas exploration sites, namely Exploration Areas A, B and C. The areas are located close to the Wafa gas facilities and have been put on hold since 2014 due to security issues in the region. Eni says the development enables the firm and its partners – bp and the Libyan Investment Authority – to commence with the exploration and development of gas fields in the areas.
Contract Awarded for Large-Scale Gas Recovery Module
In early August, Mellitah Oil & Gas – a joint venture of the NOC and Italian global major Eni – awarded a $1 billion contract to engineering and services firm, Saipem. The contract covers the provision of engineering, procurement, construction, installation and commissioning services of a 5,000-ton Gas Recovery Module offshore the north African country. The platform will enable the development and monetization of gas resources as part of the Bouri Gas Utilization project.
