Eni Spa, Italy's largest oil company, announced on Monday that it signed a memorandum with the Libyan National Transitional Council that sets the stage for the Italian oil giant to begin boosting oil production in Libya, the country that accounts for 13% of Eni's total revenue.
Eni (E) has the largest Libyan presence of any Western oil major and that status made the company especially vulnerable to the plunge in production that was seen in Libya following the onset of political violence there in February. Eni has been active in Libya for over five decades.
Eni will provide a first supply of refined petroleum products to the transitional government, to contribute to the basic and most urgent needs of the Libyan population while also providing technical assistance to assess the state of facilities and energy infrastructure in Libya and to define the type and extent of operations required to safely restart the activities, the Wall Street Journal reported.
Eni was producing about 522,000 barrels of oil equivalent per day in Libya before the violence broke out earlier this year. That number has plunged to 50,000 to 60,000 barrels per day, according to various estimates.