With the aim of boosting energy supplies and other markets, Libya’s National Oil Corporation (NOC) signed an $8 billion gas production deal with Italian energy company Eni.

The deal, which comes despite the insecurity and political chaos in the North African country was signed during a visit to Tripoli by Italy’s Prime Minister Giorgia Meloni, aims to increase gas output for the Libyan domestic market as well as exports, through the development of two offshore gas fields.

Meloni met Libya’s Prime Minister Abdulhamid al-Dbeibah, head of the internationally recognised Government of National Unity (GNU) in Tripoli for talks that also focused on migration across the Mediterranean.

At a joint news conference with Descalzi, the NOC chief, Farhat Bengdara, said the gas deal had a duration of 25 years and called it the most important new investment in Libya’s energy sector for a quarter of a century.

According to a statement by Eni’s chief executive, Claudio Descalzi, the output will begin in 2026 and reach a plateau of 750 million cubic feet per day.

“This agreement will enable important investments in Libya’s energy sector, contributing to local development and job creation while strengthening Eni’s role as a leading operator in the country.”

Since the beginning of the current Russia/Ukraine war, European countries have sought alternate gas sources outside Russia. Italy on its part has already taken a lead in sourcing gas from Algeria, building a new strategic partnership there that includes investment to help state energy company Sonatrach reverse years of declining output.

Libya is the fourth natural gas producer on the African continent, and oil and gas resources largely contribute to Libya’s export trade. The country developed a strong oil sector after major oil discoveries in the late 1950s.