France’s TotalEnergies and Italy’s Eni are planning to make investments in oil and gas projects in Libya, as the nation’s economy recovers from a decade of civil war and conflict.
TotalEnergies have signed various agreements with Libyan authorities for the sustainable development of the natural resources in the country.
The deals have been signed during the Libya Energy & Economy Summit organised by the Government of National Utility. This was the first economic conference to be conducted in ten years in the country.
Additionally, the Council of Ministers of the Government of National Utility have approved TotalEnergies and ConcoPhilips’ acquisition of Hess’ 8.16% interest in the Waha concessions.
The deal increases TotalEnergies’ stake in the concessions from 16.33% to 20.41%.
The French firm is planning to invest $2bn to boost the production capacity of the 100kbpd North Gialo project.
The Waha concessions comprise 13 producing fields in the hydrocarbon-rich Sirte Basin.
Furthermore, the firm intends to invest in gas-gathering projects to help reduce flaring, and to power Waha’s industrial facilities using solar energy.
TotalEnergies chairman and CEO Patrick Pouyanné said: “These agreements reflect TotalEnergies’ willingness to strengthen its investments in Libya’s energy sector.
“We are thus leveraging our leadership position in the region, where the lowest-cost hydrocarbons are produced, to pursue our development in renewable electricity.”
Additionally, Eni chief operating officer Alessandro Puliti was reported by Bloomberg as saying that the firm seeks to develop oil, natural gas and solar projects in the country.
Puliti said: “Libya has significant remaining oil and gas potential. Eni is ready to support that development.”
Currently, Eni produces around 400,000 barrels of oil and gas per day.
Puliti added: “Despite the complex situation, we’ve continued to invest.”
In September, TotalEnergies agreed to invest a total of $27bn in four energy projects in Iraq.
The agreement includes three contracts with the Iraqi Ministry of Oil and one with the Ministry of Electricity.