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ADNOC's XRG in talks to buy stake in Eni's Libya oil and gas business, sources say - Finance news and analysis from Global Banking & Finance Review
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ADNOC's XRG in talks to buy stake in Eni's Libya oil and gas business, sources say

Published by Global Banking & Finance Review

Posted on October 22, 2026

2 min read

· Last updated: October 22, 2026

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ADNOC's XRG Considers Acquiring Stake in Eni's Libya Oil and Gas Business

Potential Acquisition and Strategic Expansion

By Francesca Landini

Early-Stage Negotiations Between XRG and Eni

MILAN, Oct 22 (Reuters) - XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), is in talks with Eni about potentially buying a stake in the Italian company's oil and gas business in Libya, two people familiar with the matter said.

Negotiations are at an early stage and there is no certainty they will lead to a deal, the first person said.

XRG's Investment Strategy and Expansion Plans

XRG was established to pursue acquisitions in natural gas, chemicals and energy solutions, and aims to expand its liquefied natural gas capacity to between 20 million and 25 million metric tons a year by 2035.

The second person said XRG's need to invest and grow outside the Gulf region had become more pressing as the conflict between the US and Iran drags on.

Official Responses from Eni and XRG

Eni said it did not comment on rumours or speculation. XRG said it did not comment on market speculation.

Eni's Operations and Projects in Libya

Historical Presence and Production

Eni has operated in Libya since 1959. The country accounted for 162,000 barrels of oil equivalent per day of production last year, roughly 10% of the Italian group's total output.

Mellitah Oil & Gas Joint Venture

Eni operates in Libya through Mellitah Oil & Gas, a joint venture with Libya's National Oil Corporation.

Recent and Ongoing Projects

The Italian company recently announced the completion of the Bouri Gas Utilization Project, aimed at recovering associated gas from the offshore Bouri field in western Libya.

Eni is also developing the A&E Structures Project, which is designed to bring new offshore gas resources on stream for domestic use and export.

Existing Partnership Between Eni and XRG

Eni and XRG are already partners in a multibillion-dollar LNG project in Argentina being developed with state energy company YPF.

(Additional reporting by Marwa Rashad in London and Federico Maccioni in Dubai. Editing by Mark Potter)

Key Takeaways

  • XRG—ADNOC’s international investment arm—is exploring a stake in Eni’s Libyan oil & gas assets held via Mellitah, which produced about 162,000 barrels of oil equivalent per day in 2025
  • XRG has aggressive LNG expansion plans—aiming for 20–25 mtpa by 2035, and is advancing globally, including a binding JDA in February 2026 for a 12 mtpa Argentina LNG project with YPF and Eni
  • Eni’s Libyan operations are deep-rooted—active since 1959, including the Greenstream pipeline to Italy and recent developments like the Bouri Gas Utilization and Structures A&E projects, as well as offshore exploration license O1

Frequently Asked Questions

What is ADNOC's XRG discussing with Eni?
XRG is in early negotiations with Eni to acquire a stake in the Italian company's oil and gas business in Libya.
What is the significance of Libya to Eni's operations?
Libya accounted for 162,000 barrels of oil equivalent per day for Eni last year, around 10% of its total production.
What projects is Eni involved in within Libya?
Eni operates in Libya through the Mellitah Oil & Gas joint venture and is working on the Bouri Gas Utilization Project and A&E Structures Project.
What is the strategic goal of XRG's acquisitions?
XRG aims to expand globally in natural gas, chemicals, and energy solutions, increasing LNG capacity to 20-25 million metric tons annually by 2035.
Are Eni and XRG partners in any other projects?
Yes, Eni and XRG are partners in a multibillion-dollar LNG project in Argentina with YPF.

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