LONDON: The chief of Eni, the biggest gas exporter from Libya, said Thursday that oil production across the battle-torn country is near a complete halt and that the Italian company's output is down to little more than supplying power to Libyan households.

Libyan exports normally account for around two per cent of world supplies, but the violent clashes between forces loyal to longtime leader Muammar Qadhafi and rebels have split the country in half and crippled its lucrative energy sector.

Paolo Scaroni told analysts in London that he nevertheless expects the production disruptions to be temporary as both sides in the fight have an interest in resuming exports.

Eni's own production was down by two thirds, Scaroni said. What is still running is mostly gas extraction to generate electricity, and turning that off would just create more problems for civilians, he said.

''The electricity is not for Mr. Qadhafi. It is for the Libyan people,'' Scaroni said.

Eni executives are in touch with Italian officials, who are in turn consulting with the European Union. ''So far, we have been encouraged to continue production,'' Scaroni said.

The company has nevertheless suspended activity at offshore gas facilities as well as production at its Bu Attifel oil field due to insufficient staff.

During normal periods, Eni exports about 12 per cent of its natural gas from Libya via the Greenstream pipeline, which also has been suspended.

Before the crisis, Eni's normal daily production of both oil and gas was 280,000 barrels of oil equivalent. The split was roughly 40 per cent oil, and 60 per cent gas.

Nearly all of Eni's foreign staff has left the country, and many Libyan workers have taken leave, Scaroni said.

Eni facilities have not been damaged, and Scaroni said the company will be able to resume operations when the situation has stabilized. In terms of earnings, he said the short-term production losses will be offset by higher oil prices.

Scaroni made the comments during a presentation of Eni's four-year business plan, which will focus on production in Iraq, Venezuela, Angola and Russia. The company, he said, has limited investments planned in Libya over the next two years, and no major startups there over the course of the four-year plan.

Eni, which has operated in Libya for more than 50 years, expects the production halts in Libya to be temporary due to the importance of the energy industry to the nation's economy, Scaroni said.

''On this assumption, we do not expect impact on our long-term production profiles,'' Scaroni said.