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Libya: Eni launches a major gas development project in Libya

30 Jan 2023

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'Structures A&E' is a strategic project aimed at increasing gas production to supply the Libyan domestic market as well as to ensure export to Europe.

Eni and the National Oil Corporation of Libya (NOC) have agreed 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. 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 2000. 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 gas cubic feet per day.

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 USD, with significant impact on the industry and the associated supply chain, allowing a significant contribution to the Libyan economy. 

Eni CEO Claudio Descalzi stated: '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.'

Eni is the leading international gas producer in Libya, with a share of 80% of the national production (1.6 bscfd in 2022). The company has been operating in Libya since 1959 and currently has a large portfolio of assets in exploration, production and development. Operations are run through the joint company Mellitah Oil and Gas BV (Eni 50%, NOC 50%). The average equity production was 165,000 barrels of oil equivalent per day in 2022.

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Source: Eni

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