Eni: Oil Production Drops 6.6% Due to Coronavirus & Situation in Libya

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Eni S.p.A, the Italian main energy company, reported on Friday that its daily oil production declined by 6.6 percent in the second quarter of 2020 due to several reasons, including the spread of the Coronavirus and the situation in Libya.

According to a statement quoted by an Italian news agency, Eni’s business has been affected by the decline in energy prices and the Coronavirus pandemic, as its production reached 1.71 million barrels per day, a decrease of 6.6% compared to the same period last year.

The Italian energy giant indicated that the level of decline in oil production in the first half of this year has reached 5.1 percent.

The Italian giant, one of the several European energy majors reporting results on Thursday, has been hurt by slumping demand for crude and fuels as governments have imposed lockdowns to contain the virus. The revision shows a 2.6-billion-euro reduction in 2020 capital spending, lower global gas demand, and persistent operational problems in Libya.

“We have gone through what is likely to be one of the most challenging quarters the oil and gas industry has faced in its history,” Chief Executive Officer Claudio Descalzi said in the statement. “Emerging from the pandemic will be difficult, with signs of deep uncertainty still to come,” he added.

Tribal leaders in eastern Libya closed oil ports and fields in January, accusing the Tripoli-based Government of National Accord (GNA) of using oil revenues to support armed groups against the Libyan National Army (LNA).

Oil, the lifeline of Libya’s economy, has long remained a key factor in the civil war as rival authorities jostle for control of oil fields and state revenues. Libya has the ninth-largest known oil reserves in the world and the biggest oil reserves in Africa.

Libya has been in turmoil since 2011 when a civil war toppled and killed the long-time dictator Muammar Gaddafi.