ENI clinches USD 28 bln Libya oil and gas deal

Italian energy giant ENI said October 16 it had signed a USD 28 billion investment deal to develop oil and natural gas production in Libya for a period of 10 years.

The agreement between ENI and Libya's state National Oil Company (NOC) would "ensure greater energy security for Italy and enable ENI to develop some of Libya's most prolific basins in the long term," the Italian group said in a statement, cited by dpa.

"The agreement also confirms ENI as the leading foreign operator in the country and further consolidates the good relationship between Italy and Libya," the statement said.

The agreement had also extended ENI's existing contracts in Libya by 25 years with the year 2042 the new expiry date for oil production and 2047 for gas.

ENI and NOC will focus their efforts on maximising the recovery of their existing oil fields also through the use of "advanced technology for the assisted recovery of hydrocarbons (CO2 injection and water alternate gas)," the statement said. They will also implement a new drilling campaign at nearby fields.

ENI has been present in Libya since 1959 and the company operates some of the North African country's biggest fields: the oil fields of Abu-Attifel, El Feel and Bouri, and the gas and condensate fields of Bahr Essalam and Wafa which supply the Mellitah treatment plant and the Greenstream export line.