XRG in talks to acquire stake in Eni's Libya oil and gas business
by@Reuters
Summary
XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), is currently in discussions to acquire a stake in Eni's oil and gas operations in Libya, according to sources. This move reflects XRG's increased urgency to invest outside the Gulf region due to ongoing geopolitical tensions between the United States and Iran. Eni, which has been active in Libya since 1959 and produced approximately 162,000 barrels of oil equivalent per day from the country last year, operates through a joint venture with Libya's National Oil Corporation. Both companies already collaborate on energy projects in Argentina, showcasing their existing partnership.
Tokens
$ENI
Analysis
Eni: Eni is a major Italian energy company with long-standing operations in oil and gas exploration and production. It has maintained a presence in Libya since 1959, managing activities through joint ventures and recent projects to utilize associated gas and develop new offshore resources. Eni is the target company in discussions with XRG over a potential sale of a stake in its Libyan business. XRG: XRG is the international investment arm established by Abu Dhabi National Oil Company to pursue acquisitions and expand in natural gas, chemicals, and energy solutions globally. It aims to grow liquefied natural gas capacity through strategic investments outside the Gulf. XRG is the entity actively negotiating the potential purchase of a stake in Eni's Libya oil and gas operations. Abu Dhabi National Oil Company: Abu Dhabi National Oil Company, commonly known as ADNOC, is the state-owned oil and gas company of Abu Dhabi in the United Arab Emirates. Its international investment arm XRG focuses on acquisitions in natural gas, chemicals, and energy solutions to support growth beyond the Gulf region. ADNOC is directly involved as the parent entity behind the current talks for a potential stake in Eni's Libyan assets. Geopolitical Driver: XRG's efforts to expand investments beyond the Gulf region have intensified amid ongoing tensions involving the United States and Iran. Existing Collaboration: Eni and XRG already work together on energy development projects in other regions.
Categories
macropolitics