XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), is in talks with Italy’s Eni about a possible stake in Eni’s oil and gas business in Libya, Reuters reported on Thursday, citing two people familiar with the matter.
The talks are at an early stage and may not lead to a deal, one of the sources told Reuters.
Eni said it does not comment on rumors or speculation. XRG said it does not comment on market speculation.
Eni has worked in Libya since 1959. The North African country accounted for 162,000 barrels of oil equivalent per day of Eni’s output last year, about 10% of the group’s total production.
The second source said XRG’s need to invest and expand outside the Gulf had become more pressing as the conflict between the United States and Iran continued.
ADNOC set up XRG to make acquisitions in natural gas, chemicals and energy solutions. The unit aims to raise its liquefied natural gas production capacity to between 20 million and 25 million tonnes a year by 2035.
