Mellitah Oil and Gas has finalised a landmark agreement with US-based Hill International to oversee the Structures A&E project, a transformative initiative set to significantly boost Libya’s gas production capacity.
This collaboration marks a strategic effort to develop two offshore gas fields in contractual Area D of Libya’s Mediterranean coast, with production expected to commence next year at a rate of up to 750 million cubic feet of gas per day.
The project, managed by Mellitah Oil and Gas — a joint venture equally owned by Libya’s National Oil Corporation (NOC) and Italian energy giant Eni — centres on constructing two main platforms integrated into the existing Mellitah treatment complex.
These platforms will enable optimised extraction and processing of gas from the new fields, thereby bolstering both local supply and exports to European markets.
Notably, the Structures A&E project includes the development of a cutting-edge carbon capture and storage (CCS) facility at Mellitah.
This component aligns with Eni’s comprehensive decarbonisation strategy to minimise the environmental footprint of its operations by significantly reducing CO2 emissions, potentially achieving a reduction of around two million tonnes of CO2 equivalent annually.
This integration of CCS technology underscores the project’s dual focus on increasing energy output while advancing sustainable industry practices.
The initiative commands an estimated investment of US$8 billion, positioning it as one of the largest energy infrastructure projects in Libya in recent years.
The anticipated economic multiplier effect on the oil and gas sector and its supply chain is projected to be substantial, aiding Libya’s broader economic development.
The signing ceremony occurred during US President Donald Trump’s senior Africa adviser Massad Boulos’s visit to Tripoli, signifying an important diplomatic and economic milestone.
The visit also featured discussions between Boulos and Libya’s Prime Minister Abdulhamid Dbeibah, emphasising the Libyan government’s commitment to expanding economic ties with the United States.
These talks highlighted the potential for increased US involvement in Libya’s vital development and investment projects, with the prime minister’s office showcasing an extensive portfolio of strategic projects valued at around US$70 billion across minerals, energy, and electricity sectors.
The Structures A&E project is part of a broader strategy by Libya to enhance its energy production capabilities, aligning with NOC’s objective to raise oil production to two million barrels per day by 2030.
The project emphasises technological advancement, environmental stewardship, and international cooperation, heralding a new phase of industrial and economic revitalisation for Libya’s gas sector.
With its ambitious scale, advanced carbon management, and strong international collaboration, the project is poised to deliver significant gas production capacity enhancements, foster export growth, and contribute meaningfully to Libya’s economic reconstruction and environmental goals.
