Italy's Oil Production Boost Targets Domestic Supply

The Italian government has approved a decree to increase oil production in Basilicata while ensuring that production limits set out in existing agreements are not exceeded.

The decree aims to boost domestic production and reduce dependence on imports, but it does not alter the underlying framework of agreements between the Region and private operators.

According to Minister for the Environment and Energy Security Gilberto Pichetto Fratin and President of the Basilicata Regional Council Vito Bardi, the maximum oil extraction limits in Basilicata are governed by memoranda signed in 1998 and 2006 for Val d'Agri and Tempa Rossa fields respectively.

The two main groups operating in Basilicata are Eni-Agip's Trend 1 Project in Val d'Agri and Total's Tempa Rossa Project, which is not yet in production. The bulk of crude oil production is concentrated in Val D'Agri, where Eni holds a majority stake of 60.77% and Shell has a minority stake of 39.23%.