Eni [ENI:IM], an Italian energy company, and Libya’s National Oil Corporation (NOC) signed a USD8bn agreement for gas production to supply more energy to Europe despite the ongoing political chaos and insecurity in Libya, as reported by Reuters on January 28. Eni stated in a press release that production is set to commence in 2026 and reach a maximum of 750 million cubic feet per day. Following Eni’s agreement to invest USD8bn for natural gas extraction in Libya, NOC stated it anticipates signing additional agreements with foreign companies.
The Libyan oil and gas industry is one of the largest in Africa and holds a significant potential to become a major source of energy for Italy and the rest of Europe. The country is rich in natural resources, including oil and gas, and has the potential to become a major player in the energy market. The signing of this deal is seen as a positive step in the development of the Libyan economy, which has been struggling due to years of conflict and political instability. The agreement is expected to bring new investment, jobs, and infrastructure to the country, which will be crucial in its economic recovery. The increased gas supplies will help to reduce dependence on other energy sources, which will lead to more stable energy prices and more reliable energy supplies for the region.