According to Farhat Bengdara, the Chairman of the NOC, the agreement will revitalize the country’s gas investments as Libya targets to increase the participation of foreign energy companies and investors as well as the private sector to maximize the exploitation of its 80 trillion cubic feet of natural gas reserves. With the demand for natural gas increasing heavily in Europe – as Europe diversifies supply away from Russia due to the Russian-Ukraine war – the projects with bp and Eni have the potential to boost the country’s resource monetization.
The development comes at a time when Libya’s hydrocarbon production is being negatively impacted by political instability. In 2022 alone, instability has seen a wave of port closures and production halts, with oil production expected to range below 985,000 barrels per day, according to the African Energy Chamber. As such, up to $4 billion in investment is required to optimize production, according to Bengdara.