Italy to stop oil and condensates concessions, draft decree shows

By Giuseppe Fonte

ROME (Reuters) – Italy plans to stop granting concessions that allow exploration and production of oil and condensates in the country, according to a draft government decree seen by Reuters.

The decree says that the ban will not be applied to exploration and production that had already been approved.

The move is in line with Italy’s energy transition plan, which is based on the shift away from the most polluting fossil fuels, including coal and oil, towards natural gas and renewable energy sources.

The goal of the new regulation is to protect the environment while also guaranteeing the security of energy supply, the draft says.

The decree also says that gas extraction is allowed even close to Italy’s coasts if the permit for this activity has already been requested and the gas field’s potential is estimated at more than 500 million cubic metres.

The general rule states that gas exploration and production is banned in Italy if a field is located at less than 12 miles from the coast. This rule has until now blocked exploration in the North Adriatic Sea where experts say there could be significant volumes of gas.

State-controlled energy group Eni has recently started gas production in some fields off Sicily.