Eni Plans For Libya Output Drop

Eni is pressing on with investment in Libya. But most is offshore and in wet gas fields. At key onshore oil fields an output slump is already underway.

Eni, Libya’s largest foreign producer, expects a slump in output in the coming years, according to the firm's recently announced 2018-21 strategy.

“We have a rate that was about 300,000 b/d,” Eni CEO Claudio Descalzi told investors at the presentation of the strategy on 16 March. “At the end of the plan, this rate will be about 200,000 b/d."

The context of Mr Descalzi's remarks implies that the downturn he is referring to is in Eni's share of overall oil and gas output. The firm reported net oil and gas production in Libya of 270,000 boe/d in 2010, falling to around 230,000 boe/d in 2013-14. But the past three years have seen an increase in Eni's reported net output, to around 350,000 boe/d in 2015-16 and 374,000 boe/d in 2017. It's possible that the gap between Eni's reported figures and Mr Descalzi's summary is explained by the firm's inclusion of re-injected and flared gas in its gas output figures,rather than sales gas alone. This doesn't explain, though, why Eni claims a net share in gas output from its fields in 2016 (1.465bn cfd) that is greater than the entire gas output reported by the IEA for the country as a whole (1.128bn cfd). (CONTINUED - 1241 WORDS)


chart Eni Net Libya Ouput: Gas, Overall Output Rising. But For How Long?