Summary:

On 21 August 2025, Energy Capital & Power reported that Libya is advancing its $8 billion Structures A&E offshore gas project, in another effort to drive growth in the country’s energy economy.  

Operated by Mellitah Oil & Gas, a joint venture between the National Oil Corporation (NOC) and Italy’s Eni, the project will develop two offshore fields in Area D. Area D sits off Libya’s northwestern coast, north of Tripoli. 

Production from the new venture is expected to begin in 2027. The fields are expected to produce up to 750 million standard cubic feet of gas per day. 

The services contract was won by U.S-based Hill International with a $235 million deal to provide project management services. The project also includes the construction of two new offshore platforms, integration with the Mellitah Complex, and the implementation of carbon capture and storage technology. 

Libya is also advancing other upstream gas projects, including the Sabratha Compression Project, the Bouri Gas Utilization Project (BGUP), and new onshore production at the Chadar field and D2-NC2 well. These initiatives aim to increase gas production, reduce flaring, and strengthen Libya’s role in regional energy markets. 

Outlook: 

The Structures A&E project at offshore Area D, alongside Libya’s broader offshore and onshore gas initiatives, is poised to play a key role in the country’s energy landscape. However, major transformation in the sector remains highly dependent on the country’s political stability and the ability of authorities to ensure security for investors. The recent rocket strike near a UN facility outside of Tripoli is emblematic of the unpredictable security environment in Libya that remains a hurdle for even the most ambitious investors. 

By significantly increasing production capacity, these developments could strengthen Libya’s energy security and open new avenues for regional and international exports. The scale and complexity of the projects are likely to draw international attention and may attract further foreign investments, fostering collaboration with global energy firms and potentially accelerating technology transfer.  

If fully realized, these initiatives might serve as a platform for sustained sector growth, diversify Libya’s hydrocarbon portfolio, and support broader economic stabilization and development objectives. 

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