Libya’s Ministry of Oil and Gas has rejected the $8bn agreement between the country’s National Oil Corporation (NOC) and the Italian company Eni for the Structures A&E project.

The ministry said that the agreement violated the legal legislation stipulated in the oil sector’s law and the law establishing the NOC, and was signed without its approval.

It specifically objected to the terms of the deal that increases Eni’s share of the project’s proceeds to 37% from a previously agreed 30%.

The ministry called on the NOC chairman to follow the legal mechanisms and send the technical and economic justifications for signing the agreement.

The Ministry said: “The NOC’s unilateral decision to amend the agreements opens the way for other partners to say that any amendment can be made to what was previously agreed upon, without going through the procedures and legislation of the Libyan law.”

Last week, Eni signed an agreement with NOC to develop the Structures A&E project in Libya.

The project includes the development of two gas fields, Structure A and Structure E, located in contractual area D, offshore Libya.

Eni said that the project will have a significant impact on the industry and its related supply chain, and contribute to the Libyan economy.

The Structures A&E project will help increase gas production to supply the Libyan domestic market and export to Europe, said the company.

Eni CEO Claudio Descalzi last week said: “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.”