In a bold move that underscores its commitment to North Africa’s energy landscape, Italian energy conglomerate Eni has unveiled plans to invest approximately €24 billion (equivalent to $26.24 billion) over the next four years in Algeria, Libya, and Egypt. This strategic initiative aligns with Italy’s broader Mattei Plan, aiming to fortify economic and political ties with the African continent.
Eni’s CEO, Claudio Descalzi, emphasized the critical nature of this investment, highlighting the region’s escalating internal energy demand, which is surging by about 7–8% annually due to population growth. To address this, Eni intends to allocate over €8 billion each to Algeria, Libya, and Egypt, focusing on enhancing regional energy production to satisfy local consumption and bolster Europe’s hydrocarbon supply.
In Egypt, Eni is set to rejuvenate operations at the Zohr gas field, the nation’s largest natural gas reserve. After a period of dormancy, drilling is scheduled to recommence by the end of the year, with plans to drill an additional well in 2025. This endeavor is projected to involve an investment of around $160 million. The Zohr field, discovered in 2015, previously accounted for 40% of Egypt’s gas production but has seen output decline to less than 20 billion cubic meters, about 40% below capacity, leading to an energy crisis and necessitating the resumption of liquefied natural gas imports to meet domestic demand.
In Libya, Eni has entered an $8 billion agreement with the National Oil Corporation to develop two offshore gas fields. This deal aims to boost gas output for both domestic use and exports, with production expected to commence in 2026 and reach a plateau of 21 million cubic meters per day. Despite Libya’s complex political landscape, Eni’s commitment reflects confidence in the country’s potential to contribute significantly to regional energy supplies.
While specific projects in Algeria are yet to be detailed, Eni’s substantial investment underscores the company’s intent to deepen its footprint in the country. This move aligns with Italy’s strategy to diversify its energy sources and reduce reliance on Russian gas, positioning Algeria as a pivotal partner in this endeavor.
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Eni’s investments are poised to have far-reaching implications. The infusion of capital is expected to stimulate local economies, create jobs, and foster technological advancements in the energy sector. By boosting production in North Africa, Eni aims to enhance energy security for both the region and Europe, providing alternative sources to meet growing demand. Strengthening ties with North African nations through energy partnerships may contribute to regional stability and reinforce Italy’s influence on the continent. However, challenges remain. Political instability, particularly in Libya, and the technical complexities of large-scale energy projects could pose risks to timely implementation. Nonetheless, Eni’s strategic investments signal a robust commitment to North Africa’s energy future, potentially reshaping the region’s role in the global energy market.
