Libya Accelerates $8 Billion Offshore Gas Development with 2027 Production Target
Libya is advancing rapidly with its ambitious $8 billion Structures A&E offshore gas development, with recent contract awards and confirmed production timelines signaling a major breakthrough for the country’s energy sector. The project, led by Mellitah Oil & Gas—a joint venture between Eni and the National Oil Corporation (NOC)—is expected to start production by 2027 and deliver up to 750 million standard cubic feet of gas per day once operational.
Last month, U.S.-based Hill International secured a $235 million contract to provide project management services for Structures A&E, which will develop two offshore fields in Area D. The project includes construction of two new platforms, tie-in to the Mellitah Complex, and integration of carbon capture and storage technology to reduce emissions.
The development forms a centerpiece of Libya’s strategy to expand gas capacity, capture associated gas, and generate greater export revenues while reinforcing the country’s role as a strategic supplier to Europe and bolstering domestic energy security. Beyond Structures A&E, Libya is advancing several upstream gas initiatives including the Bouri Gas Utilization Project (BGUP), scheduled to start up in 2026, and the Sabratha Compression project due for completion by year-end.
These projects are complemented by new onshore activity, with NOC subsidiary Zallaf Oil and Gas starting production at the Chadar field, delivering 7.5 million cubic feet of associated gas alongside 1,500 barrels of oil per day. The developments strengthen the case for maximizing the Greenstream pipeline—Libya’s 520-kilometer export route to Italy—which has available capacity but depends on higher upstream output.
Source: energycapitalpower.com
