Eni to obtain half of BP’s Libya oil and gas license

Published: 09 Oct 2018 By Grace Kimberley

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On Monday, Italian energy giant Eni announced it will now acquire half of British Petroleum’s Libya oil and gas license, with an aim to begin exploration activities in 2019.

Eni will obtain 43.5 per cent of the 85 per cent license BP upholds, meaning the company will be responsible for the operational duties of exploration.

BP and Eni signed and released a letter of intent to confirm the expected resume of exploration in the area. The other 15 per cent of the license is owned by the Libyan Investment Authority.

In recent years Eni has become the largest energy producer in Libya, as the company already has operations and projects under construction in the Ghadames basin.

Eni’s oil and gas generation is currently standing at approximately 250,000 barrels of oil a day, says Wood Mackenzie. BP cut ties with its operations in the region after an uprising began and the company were faced with security concerns.

NOC chairman Mustafa Sanalla says the agreement showed renewed reassurance in the war-heavy country’s oil and gas industry.

“This agreement is a clear signal and recognition by the market of the opportunities Libya has to offer and will only serve to strengthen our production outlook,” he said.

BP Chief Executive Officer Bob Dudley believes the deal to be an important step “towards returning to our work in Libya”.

“We believe that working closely together with Eni and with Libya will allow us to bring forward restarting exploration in these promising areas,”

 

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