Africa’s second largest oil producing country, Libya, via its National Oil Corporation (NOC), is set to sign offshore gas exploration and production deals with the Italian energy group Eni.
This information was relayed by the head of NOC, Farhat Bengdar who disclosed to the media that the oil deal would require $8 billion to produce up to 850 million cubic feet a day of gas from the Mediterranean.
The new development came shortly after the CEO of the energy cooperation Eni Claudio Descalzi spoke about Africa’s potential to become one of the most prominent players in the energy market. Read the story here.
In 2022, Algeria became Italy’s largest gas supplier, supplying an estimated 29 bcm quota of the 75 bcm of gas used by Italy.
The year was riddled with a number of economic crises which rippled across the globe. Amongst these myriad of issues was the prevalent energy crises, a crisis spurred by the ongoing conflict between Russia and Ukraine which saw the depletion of the supply of Russia’s Liquified Natural Gas (LNG).
This shortage of LNG was particularly detrimental to most of Europe which prior to the conflict relied heavily on Russia’s LNG.
The war complicated the supply chain and forced Europe to look for alternatives to its energy supply. Amongst the options inspected by the continent was Africa, and as a result numerous exploration opportunities sprung up in the motherland.
Even into the new year, Energy deals and partnerships are being established in Africa. As recently as a week ago, Uganda announced the commencement of its first ever commercial oil production drilling program.
Uganda alongside Libya, and Algeria are just a few of the numerous African countries looking to fill the economic gap created by a shortage of gas supply. These countries fully understand the opportunities that lay in the current oil scarcity.