Abu Dhabi National Oil Company’s international investment arm, XRG, is in preliminary talks to acquire a stake in Italian energy major Eni’s oil and gas operations in Libya, as the UAE energy group accelerates its expansion beyond the Middle East.
The discussions remain at an early stage, with no guarantee of an agreement, Reuters reported Thursday, citing two people familiar with the matter.
XRG’s push to diversify internationally has reportedly gained urgency as the prolonged U.S.-Iran conflict increases geopolitical risks across the Gulf.
Neither company confirmed the negotiations, with both declining to comment on market speculation.
Eni has operated in Libya since 1959 and remains one of the country’s leading international energy producers. Its Libyan operations produced approximately 162,000 barrels of oil equivalent per day in 2025, accounting for roughly 10% of the company’s total output.
The Italian major operates through Mellitah Oil & Gas, a joint venture with Libya’s National Oil Corporation.
Earlier this week, Eni announced the completion of its Bouri Gas Utilization Project, which is expected to recover approximately 700 million cubic meters of gas annually while reducing emissions by around 1.5 million tonnes of CO? per year.
Eni is also developing the offshore A&E Structures Project, which aims to increase gas supplies for domestic consumption and exports to Europe.
XRG and Eni are already partners in Argentina’s ambitious LNG development alongside state-owned YPF. The project’s first phase targets 12 million tonnes of annual LNG export capacity, with a final investment decision targeted by the end of 2026.
A potential Libyan transaction would further deepen the companies’ relationship while expanding XRG’s international upstream portfolio.
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Source: finance.yahoo.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.
