Italian energy company, Eni, formalized Thursday with its Libyan counterpart National Oil Corporation (NOC) the revocation of force majeure status on exploration areas A and B (onshore), and C (offshore), where Eni was the operator with a 42.5% stake, along with BP, 42.5%, and the Libyan Investment Authority with 15%.
"Force Majeure, declared in 2014, was revoked following the completion by Eni of a Security Risk Assessment to assess the security conditions in the areas where the exploration program will be carried out; this study yielded positive results." Eni said.
Following the revocation of force majeure, Eni as operator of the blocks will be able to resume the contract activities in exploration basins, some of which are located close to Al-Wafa’s gas facilities. With an 80% share of national production (1.6 Bscf/d in 2022), Eni is the country's leading gas producer and domestic market supplier.
Eni has been operating in Libya since 1959 and currently has a large portfolio of assets under exploration, production and development. Production activities are operated through the joint venture company Mellitah Oil and Gas BV (Eni 50%, NOC 50%). Equity production was 165,000 barrels of oil equivalent per day in 2022.
Libya's NOC said earlier on Thursday it had received official notes from Eni and BP, saying they would lift the force majeure and resume their exploration activities in three areas of the country. The NOC also said it had received an official note from Algeria's state oil and gas producer Sonatrach saying it would lift its force majeure and resume its exploration activities as well.
This step came after the NOC asked for lifting force majeure in December 2022 by international companies operating in the field of oil and gas and which had oil and gas exploration, sharing and production agreements signed with Libya.