ADNOC's XRG in Early Talks to Acquire Stake in Eni's Libya Operations

Abu Dhabi National Oil Company's international investment arm XRG is in preliminary discussions to acquire a stake in Eni's oil and gas operations in Libya, Reuters reported Thursday, citing two people familiar with the matter. No agreement is guaranteed, and neither company confirmed the talks. Eni has operated in Libya since 1959 through Mellitah Oil & Gas, a joint venture with Libya's National Oil Corporation. Its Libyan operations produced approximately 162,000 barrels of oil equivalent per day in 2025, roughly 10% of the Italian major's total output. XRG's international expansion has reportedly gained urgency amid heightened geopolitical risk across the Gulf. The two firms are already partners in Argentina's LNG development with state-owned YPF, targeting 12 million tonnes of annual export capacity with a final investment decision by the end of 2026. A Libyan deal would deepen ties and expand XRG's upstream portfolio.