ADNOC’s XRG in Talks to Acquire Stake in Eni’s Libya Oil and Gas Operations

XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), is reportedly in discussions with Italian energy company Eni over the potential acquisition of a stake in its oil and gas operations in Libya, according to Reuters.

The negotiations, reported on October 22, are understood to be at an early stage, with no guarantee that an agreement will be reached. Neither company has confirmed the potential transaction, with both Eni and XRG declining to comment on market speculation.

XRG Expands Its International Energy Ambitions

Established to pursue international investments in natural gas, chemicals, and energy solutions, XRG is seeking to strengthen its presence in major energy markets beyond the Gulf region.

The company aims to expand its liquefied natural gas (LNG) capacity to between 20 million and 25 million metric tons annually by 2035, positioning itself as a significant player in the global gas industry.

According to Reuters, XRG's interest in international expansion has gained additional urgency amid ongoing geopolitical tensions involving the United States and Iran.

A potential investment in Eni's Libyan operations would represent another step in XRG's international growth strategy and could strengthen energy investment ties between the United Arab Emirates and Libya.

Eni’s Strategic Position in Libya

Eni has maintained a presence in Libya since 1959, making it one of the country's longest-established international energy operators.

In 2025, Libya contributed approximately 162,000 barrels of oil equivalent per day to Eni's production, representing roughly 10% of the Italian company's total output.

Eni conducts its Libyan operations through Mellitah Oil & Gas, a joint venture with Libya's National Oil Corporation (NOC).

The company continues to play a significant role in developing Libya's hydrocarbon resources, particularly offshore natural gas projects that support domestic energy requirements and export opportunities.

Major Gas Projects Strengthen Libya’s Energy Outlook

The reported discussions come as Eni advances several strategic energy developments in Libya.

Most recently, Eni and NOC announced the completion of the Bouri Gas Utilization Project, designed to recover associated gas from the offshore Bouri field in western Libya. The development supports improved resource utilization and strengthens the country's gas supply infrastructure.

Eni is also progressing the A&E Structures Project, a major offshore gas development intended to bring additional natural gas resources into production for domestic consumption and international exports.

These investments highlight Libya's continuing importance within Eni's international portfolio and its potential to attract further investment into the energy sector.

Existing Partnership Between Eni and XRG

Eni and XRG already maintain an international energy partnership through a multibillion-dollar LNG development in Argentina alongside state-owned energy company YPF.

Their existing cooperation could provide a foundation for further collaboration, although the proposed Libyan transaction remains unconfirmed.

If an agreement is reached, the investment could deepen UAE participation in Libya's upstream energy sector while supporting XRG's broader international expansion objectives.

For now, discussions remain preliminary, and no financial terms, ownership percentages, or transaction timeline have been publicly disclosed