Libya's National Oil Corp. (NOC) will sign offshore gas E&P deals with Italy's Eni on Jan. 28, NOC head Farhat Bengdara told a television channel.
The deal would require $8 billion to produce up to 850 MMcf/d of gas from the Mediterranean, Bengdara said, amid efforts by Libya to take advantage of demand for North African gas in Europe because of the war in Ukraine.
Bengdara was speaking to local al-Masar television in an interview broadcast late on Jan. 24 and said the deal involved the renewal of an existing agreement originally struck in 2008.
Eni CEO Claudio Descalzi could travel to Libya to sign the agreement, an Italian source said.
However, the legality of any deals signed by Bengdara or the Government of National Unity in Tripoli that appointed him could be challenged by the country's eastern-based parliament.
The parliament said last year that the Tripoli government's mandate had expired and it no longer recognizes any of its actions - including the appointment of Bengdara - as legitimate.
The standoff between factions aligned with the government and those aligned with the parliament has thwarted efforts to move towards a new general election and threatened to spark a new bout of warfare.
Meanwhile, the government's own efforts to strike a bilateral energy deal with Turkey have also been suspended by the country's appeals court, raising further questions over the exploitation of Libyan energy.
Recommended Reading
New Permian Math: Vital Energy and 42 Horseshoe Wells
2024-05-10 - Vital Energy anticipates making 42 double-long, horseshoe-shaped wells where straight lines would have made 84 wells. The estimated savings: $140 million.
SM Energy Targets Prolific Dean in New Northern Midland Play
2024-05-08 - KeyBanc Capital Markets reports SM Energy’s wells “measure up well to anything being drilled in the Midland Basin by anybody today.”
Vår Selling Norne Assets to DNO
2024-05-08 - In exchange for Vår’s producing assets in the Norwegian Sea, DNO is paying $51 million and transferring to Vår its 22.6% interest in the Ringhorne East unit in the North Sea.
Crescent Energy: Bigger Uinta Frac Now Making 60% More Boe
2024-05-08 - Crescent Energy also reported companywide growth in D&C speeds, while well costs have declined 10%.
SLB OneSubsea JV to Kickstart North Sea Development
2024-05-07 - SLB OneSubsea, a joint venture including SLB and Subsea7, have been awarded a contract by OKEA that will develop the Bestla Project offshore Norway.