Eni Revokes 2014 Force Majeure on Three Gas Exploration Sites in Libya

By IndraStra Global News Team

Eni holds the position of primary gas producer in Libya and supplies the domestic market, being the main source. It holds a significant 80% share of the total production of the country.

On Thursday (August 3), Eni, the Italian energy company, announced lifting a force majeure declaration on three gas exploration sites in Libya. This decision comes after a nine-year period of inactivity in these areas due to security concerns.
According to Eni's statement, the company, in collaboration with the Libyan National Oil Corporation (NOC), has officially removed the force majeure clause from exploration sites A and B (onshore) and C (offshore). Eni holds a 42.5% stake in these areas and operates alongside BP, which also holds a 42.5% stake, and the Libyan Investment Authority with 15%. Eni stated that a security risk assessment conducted on the sites has yielded positive outcomes.
As a result of this development, the involved companies are now permitted to resume their contractual activities in the exploration regions, some of which are situated near Wafa's gas facilities, approximately 540 kilometers (336 miles) southwest of Tripoli, the capital.
Eni, being Libya's largest gas producer and supplier to the domestic market, holds an 80% share of the national gas production, equivalent to 1.6 billion standard cubic feet per day in the previous year.
Eni has a long history of involvement in Libya's gas and oil resources, operating in the country since 1959. Eni conducts its production operations through Mellitah Oil and Gas BV, a joint venture where Eni and NOC each own 50%. The equity production for 2022 was recorded at 165,000 barrels of oil equivalent per day.
However, the ongoing war and instability in Libya have led to a decline in the nation's gas and oil output in recent years. In early July, Field Marshall Khalifa Hifter, a prominent figure in eastern Libya, warned of potential military action if oil revenues were not equitably distributed within two months. Some lawmakers supporting Hifter argue that the central bank unfairly allocates most oil revenues to the UN-recognized government in Tripoli, despite the majority of oil production occurring in eastern Libyan fields.
Eni has a significant presence not only in Libya but also in Algeria and Egypt. The North African region has gained attention from European countries as an alternative source of oil and gas following restrictions on imports from Russia due to international sanctions resulting from Russia's invasion of Ukraine in February 2022.

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