ADNOC in Talks to Buy Stake in Eni’s Libya Business
XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), is in early-stage talks with Italian energy group Eni to acquire a stake in its Libyan oil and gas operations. A deal could bring another major Gulf energy investor into Libya, strengthening the country’s position in regional oil and gas markets while raising questions about how it can attract more capital to develop its resources.
According to a Reuters report on the potential deal, the discussions remain preliminary and may not lead to an agreement. Neither company has confirmed the talks, and the parties have not disclosed the size of a potential stake or the assets it would cover.
The interest comes as Libya seeks to increase oil and gas production, develop offshore resources and attract international investment. For investors, the potential transaction puts the value of Eni’s established Libyan operations back in focus, particularly as European demand for alternative gas supplies and global competition for energy assets continue to shape investment decisions.
Why Eni’s Libyan Operations Matter to Investors
Eni has operated in Libya since 1959 and remains the country’s leading international energy operator. The company recorded equity production of approximately 162,000 barrels of oil equivalent per day in Libya in 2025, accounting for around 10% of its total output.
Eni operates in the country through Mellitah Oil & Gas, a joint venture with Libya’s National Oil Corporation (NOC). Its portfolio includes established oil and gas production, as well as projects designed to increase offshore gas supplies for domestic consumption and export.
Eni recently completed construction of its Bouri Gas Utilization Project, with start-up procedures underway. The project will recover gas previously flared during production, adding around 700 million cubic meters of gas annually for the domestic market and supporting additional exports to Europe through the GreenStream pipeline. Eni expects the project to reduce greenhouse gas emissions by approximately 1.5 million tons of carbon dioxide annually.
The company is also developing the A&E Structures Project to bring additional offshore gas resources into production. Together, these developments highlight the commercial opportunities available to investors that can support existing operations, expand production and improve the use of Libya’s energy infrastructure. Eni outlines these projects in its overview of operations and investment in Libya.
For XRG, a stake in Eni’s Libyan business could provide access to an established production base and future development opportunities without requiring it to build an entirely new operation from the ground up. However, the financial terms, proposed ownership structure and precise scope of any transaction remain unknown.
Why XRG Is Looking Beyond the Gulf
XRG was established by ADNOC to expand its international investments in natural gas, liquefied natural gas (LNG), chemicals and energy solutions. The company aims to build a major global gas and LNG business, targeting annual LNG capacity of 20 million to 25 million metric tons by 2035.
A potential investment in Libya would fit that broader expansion strategy. XRG and Eni already partner in a major LNG project in Argentina alongside state-owned energy company YPF, giving the two companies an existing commercial relationship.
The reported discussions also come amid heightened geopolitical risks in the Gulf, increasing the importance of diversifying energy investments and supply options. Libya’s location in the central Mediterranean, its existing export links to Europe and its established oil and gas production make it a potential destination for capital seeking exposure to North African energy.
Yet Libya’s appeal comes with significant challenges. Political divisions, security risks, uncertainty over institutional decision-making and the need for investment in infrastructure can complicate long-term energy projects. Investors must assess these risks alongside the potential returns from production and future development.
A transaction involving an existing international operator could offer a more direct route into the market than a new exploration venture. However, the commercial value of any investment would depend on the terms of the deal, the assets included and the ability to maintain stable operations.
What a Potential Deal Could Mean for Libya
The potential entry of XRG would signal continued international interest in Libya’s energy resources, but the more important question is whether that interest can translate into additional investment and higher production.
A stake purchase alone would not necessarily increase output or bring new capital into the country’s oil and gas sector. The impact would depend on whether the transaction supports new development, improves operational efficiency or helps accelerate projects that can supply both the domestic market and export customers.
Libya also needs to capture more value from its natural gas resources. Gas recovery projects and offshore developments could help meet electricity demand, reduce waste from flaring and create additional export opportunities. These projects require financing, technical expertise and consistent cooperation between international operators and the NOC.
The talks also highlight the importance of a predictable investment environment. Clear commercial arrangements, effective institutions and reliable project approvals would help Libya compete for capital against other energy-producing countries. International companies may see considerable potential in Libya, but they also need confidence that projects can proceed without prolonged political or operational disruption.
For now, the reported discussions between XRG and Eni remain preliminary, and no agreement has been announced. Still, the potential transaction offers a useful indication of how investors view Libya’s established energy assets and future production opportunities.
The key test for Libya will be whether growing international interest translates into new investment, stronger gas supplies and sustainable growth in oil and gas production. That would deliver greater economic value than a change in ownership alone.
