Libya to sign new gas deals with Italy’s Eni

Libya to sign new gas deals with Italy’s Eni

Libya’s National Oil Corporation (NOC) will sign offshore gas exploration and production deals with Italy’s Eni on Saturday, NOC head Farhat Bengdara told a television channel.

The deal would require $8 billion to produce up to 850 million cubic feet a day 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 Tuesday and said the deal involved the renewal of an existing agreement originally struck in 2008.

Eni Chief Executive Claudio Descalzi could travel to Libya to sign the agreement, an Italian source told Reuters.

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.