Edison has announced that it has entered into an agreement with Eni as regards the revision of the pricing formula on gas imported from Libya.

According to the company, the new price formula is applicable to gas imported from Libya from October 1, 2015 to 2018.

It added that its core revenue target for this year is about 650 million euros.

Under this contract, Edison will import 4 billion cubic meters of gas annually from Eni which is regarded as the biggest foreign oil and gas producer in the country, Reuters reports.

In April, Eni re-negotiated the terms of its Libyan gas supply contract with Edison after an arbitration award in the latter's favor at the end of 2015.

The arbitration court in late 2015 approved Edison's 2012 appeal for a price revision with a payment of about 1 billion euros.

Eni has been delivering significant volumes of gas from its operations in Libya to Edison since early 2000s.

Apart from the long-term supply agreement from Libya, Eni also has long-term import agreement with suppliers like Algeria’s state-oil company, Sonatrach, Russia’s Gazprom and the Netherlands’ GasTerra.

Anita Fatunji