XRG Pursues Stake in Eni Libyan Oil and Gas Assets
Energy firms are increasingly looking to diversify regional footprints to meet long-term production capacity targets.
Updated on Oct. 22, 2026 in Oil and Gas
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XRG is in negotiations to acquire a stake in the Libyan oil and gas operations of energy major Eni. This potential transaction reflects a strategic move by XRG to diversify its asset portfolio beyond the Persian Gulf region.
Why it matters
The deal would provide XRG with an established foothold in Libyan energy production, which currently accounts for 10 percent of Eni's total global output. For energy operators, this highlights a broader industry shift toward diversifying upstream footprints to mitigate regional dependency.
Libyan operations generated 162,000 barrels of oil equivalent per day last year, representing 10 percent of Eni's total output. Meanwhile, XRG is pursuing a long-term goal to reach an annual LNG production capacity of 20 million to 25 million tonnes by 2035.
The players
Eni
An Italian multinational energy company with a large-scale integrated upstream and midstream footprint across Africa and Europe.
XRG
A global energy firm currently executing a strategy to expand its liquefied natural gas capacity and geographic reach.
National Oil Corporation
The state-owned entity responsible for managing Libya's hydrocarbon resources and joint venture partnerships.
The details
Eni maintains its presence in Libya through the Mellitah Oil Gas joint venture, which is partnered with the National Oil Corporation. The company leverages this structure to develop substantial gas resources, such as those found in the Bouri gas utilisation and AE structures. By integrating these assets, XRG aims to scale its international footprint while working within existing operational frameworks that have been active since 1959.
Timeline
1959: Eni began oil and gas operations in Libya.
2025: Libya production reached 162,000 barrels of oil equivalent per day.
2035: XRG targets annual LNG capacity of 20 million to 25 million tonnes.
Market Landscape
This deal builds upon the established infrastructure of the Bouri gas utilisation project, which serves as a central hub for regional production. It marks a strategic expansion for XRG, mirroring a trend of diversified energy partnerships beyond the Persian Gulf.
Energy operators should monitor the shifting ownership stakes within major joint ventures, as these moves often signal changes in production priority and capital expenditure. The potential entry of new partners can also alter supplier dynamics and local service contract requirements for firms operating in the North African region.
The takeaway
The move underscores the high value placed on stable, long-running production assets as firms race to meet aggressive 2035 capacity targets. Operators should benchmark their own expansion strategies against these capital-intensive deals to determine if acquisition or organic growth is more viable.
Further reading
For additional context on sector trends, see our coverage of Oil and Gas.
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