ADNOC's XRG weighs stake purchase in Eni's Libya oil and gas business

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ADNOC may buy Eni's Libya stake

Highlights

ADNOC's XRG is in preliminary talks to acquire a stake in Eni's Libya oil and gas assets, with both companies declining to comment on rumors.
Libya contributed 162,000 barrels of oil equivalent per day to Eni in 2023, representing around 10% of total company production.
Eni's ongoing projects in Libya, including the Bouri Gas Utilization Project and A&E Structures Project, underscore the strategic value of these assets for gas supply and production growth.

Talks center on Libya upstream assets

As reported by Reuters, XRG and Eni are discussing a potential transaction involving the Italian group’s oil and gas operations in Libya. The talks remain preliminary, and both companies decline to comment beyond saying they do not comment on rumours or market speculation.

XRG was established as ADNOC’s international investment arm to pursue acquisitions in natural gas, chemicals and energy solutions. It is seeking to expand its liquefied natural gas capacity to between 20 million and 25 million metric tons a year by 2035.

One of the people said XRG’s need to invest and grow outside the Gulf region has become more pressing as the conflict between the U.S. and Iran drags on. Eni and XRG are already partners in a multibillion-dollar LNG project in Argentina alongside state energy company YPF.

Libya remains material to Eni output

Eni has operated in Libya since 1959, giving the North African country a long-standing role in its upstream portfolio. Libya accounted for 162,000 barrels of oil equivalent per day of production last year, or roughly 10% of the company’s total output.

The company operates in Libya through Mellitah Oil & Gas, a joint venture with Libya’s National Oil Corporation. It recently announced the completion of the Bouri Gas Utilization Project, aimed at recovering associated gas from the offshore Bouri field in western Libya.

Eni is also developing the A&E Structures Project, which is designed to bring new offshore gas resources on stream for domestic use and export. Any agreement with XRG would therefore come against the backdrop of active development work in a market that remains strategically important for regional gas supply and Eni’s production mix.

In our earlier article on how Middle East conflicts are reshaping global trade, we noted that companies are redesigning supply chains and shipping routes to reduce exposure to repeated disruptions, even at higher cost. We also highlighted forecasts pointing to a sharp drop in regional exports and imports as the fallout from geopolitical risks and tariffs pushes more businesses toward diversification and alternative routes.

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