Italian oil and gas giant Eni announced on Saturday it has signed an agreement with National Oil Corporation of Libya (NOC) for development of “Structures A&E”, a strategic project aimed at increasing gas production to supply the Libyan domestic market as well as to ensure export to Europe.

The agreement was signed by Eni CEO, Claudio Descalzi, and the CEO of NOC Farhat Bengdara in the presence of the Prime Minister of Italy, Giorgia Meloni, and the Prime Minister of the Libyan Government of National Unity, Abdul Hamid Al-Dbeibah.

Structures A&E consists of the development of two gas fields, namely Structures A and E, located in the contractual area D, offshore Libya, Eni said in a press statement.

The combined gas production from the two structures will start in 2026 and reach a plateau of 750 million of standard gas cubic feet per day.

The statement said production will be ensured through two main platforms tied-in to the existing treatment facilities at the Mellitah Complex.

The project also includes the construction of a Carbon Capture and Storage (CCS) facility at Mellitah, allowing a significant reduction of the overall carbon footprint, in line with Eni’s decarbonisation strategy.

The overall estimated investment will amount to $8 billion, the statement disclosed.

Eni CEO Claudio Descalzi said: "This agreement will enable important investments in Libya's energy sector, contributing to local development and job creation while strengthening Eni's role as a leading operator in the country."

Eni is the leading international gas producer in Libya, with a share of 80 percent of the national production (1.6 bscfd in 2022). The company has been operating in Libya since 1959 and currently has a large portfolio of assets in exploration, production and development.

Operations are run through the joint company Mellitah Oil and Gas BV with ownership split between Eni and NOC 50. The average equity production was 165,000 barrels of oil equivalent per day in 2022.