Eni has maintained production in Libya over the past eight years, but during that time it was not possible to launch new projects, Descalzi said, noting that despite the cutback, Eni will remain in Libya.
Eni has been operating in Libya since 1959, and its exploration and production activities in the country are regulated by six Exploration and Production Sharing contracts (EPSA). The licenses of Eni’s assets in Libya expire in 2042 and 2047 for oil and gas, respectively. In 2016, Eni’s production in Libya averaged 346,000 bpd—the highest level since the outbreak of the civil war, according to the company, which also noted that the Libyan upstream oil accounted for around 20 percent of its total production for the year.
Eni’s 2018-2021 strategy unveiled on Friday includes finally lifting the dividend after it was cut three years ago, and places a key focus on exploration and oil and gas production growth. The firm expects its total oil and gas production to grow by 3.5 percent annually by 2021, thanks to the ramp-up and start-up of new projects, which are expected to contribute about 700,000 boepd in 2021.
However, the weight of Eni’s upstream business in North Africa, including in Libya, is expected to decrease to 33 percent in 2021, from 39 percent last year.
Libya has managed to sustain its oil production at around 1 million bpd over the past couple of months and has started to raise its oil exports to Europe and the United States.
