XRG in Early Talks to Acquire Stake in Eni’s Libya Oil and Gas Business as North Africa Expansion Accelerates
Abu Dhabi-based energy investment company XRG is reportedly exploring the acquisition of a stake in Eni’s oil and gas operations in Libya, marking a potential strategic expansion into one of North Africa’s most significant hydrocarbon markets. The discussions, first reported by Reuters, remain in the early stages and there is no certainty that a transaction will ultimately be concluded.
The proposed investment aligns with XRG’s broader strategy of building a diversified international energy portfolio beyond the Gulf region.
As the global energy sector increasingly focuses on securing long-term gas and upstream assets, Libya’s sizeable reserves and strategic location continue to attract investor interest.
Neither Eni nor XRG, the international investment arm of Abu Dhabi National Oil Company (ADNOC), has publicly disclosed details regarding the potential deal.
However, industry observers view the discussions as a sign of growing confidence in Libya’s energy sector, which has been pursuing production growth despite ongoing political and operational challenges.
Eni remains one of Libya’s most prominent international energy operators. The company’s Libyan operations produced approximately 162,000 barrels of oil equivalent per day in 2025, underscoring the strategic value of any stake sale and highlighting the scale of assets under consideration.
For XRG, a successful investment would strengthen its position within North Africa’s energy landscape while advancing its ambitions to become a major global energy investor.
The company was established to focus on investments across natural gas, chemicals and energy solutions, with plans to expand its liquefied natural gas (LNG) capacity to between 20 million and 25 million tonnes per year by 2035.
A deal would also deepen economic and energy ties between the United Arab Emirates and Libya, potentially opening the door to further collaboration in upstream development, gas infrastructure and broader energy transition initiatives.
While negotiations remain preliminary, the potential transaction reflects ongoing competition among international investors seeking exposure to high-value energy assets in emerging markets.
Libya’s vast hydrocarbon resources, combined with renewed investment interest, continue to position the country as an important player in the future of regional energy supply.
