Italy Targets Oil Production Hike in Basilicata Without Exceeding Limits

The Italian government has issued a decree aimed at increasing oil production in Basilicata without exceeding existing limits. This is part of an effort to reduce dependence on imports and strengthen energy independence, both for security reasons and to keep costs down for households and businesses.

The decree does not call into question the underlying framework provided by agreements governing the management of Basilicata's oil fields. The maximum oil extraction limits in Basilicata are governed by memoranda of understanding signed in 1998 (Val d'Agri) and 2006 (Tempa Rossa).

The bulk of crude oil production is concentrated in Val D'Agri, where Eni holds a majority stake of 60.77 per cent and Shell has a minority stake of 39.23 per cent.