A Libyan company linked to the eastern faction controlling part of the country has exported crude oil worth at least $600 million since May 2024, effectively breaking the National Oil Corporation’s (NOC) long standing monopoly on exports.
This development was revealed through shipping records and a report by United Nations experts. The exports were carried out by Arkenu Oil Company, a private firm established in 2023.
This marks the first time a private Libyan company has been involved in oil exports, raising concerns about the diversion of oil revenue from the Central Bank of Libya.
According to a U.N. report dated December 13, 2024, Arkenu is indirectly controlled by Saddam Haftar, son of military commander Khalifa Haftar, whose forces dominate eastern Libya.
The country has remained divided since the 2011 fall of Muammar Gaddafi, with an internationally recognized government in Tripoli and a rival administration in the east, backed by Haftar’s forces.
Charles Cater, director of investigations at The Sentry, an international policy group, noted that this situation represents a major shift in Libya’s oil sector.
“This is a striking precedent that reflects the growing influence of armed actors over the oil sector,” Cater said.
Arkenu, headquartered in Benghazi, began exporting crude in May after being awarded ownership of a cargo by the Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, according to a July 11 letter seen by Reuters.
Since then, the company has shipped another seven cargoes, totaling 7.6 million barrels between May and December 2024. Based on Brent crude prices, these shipments are valued at approximately $600 million.
Among the buyers was U.S. oil major ExxonMobil, which purchased a cargo destined for Italy on October 28, according to trade data and documents.
Unipec, the trading arm of China’s state owned refiner Sinopec, also bought at least two shipments bound for Britain and Italy.
Reuters reached out to Arkenu, the Libyan National Army, the NOC, AGOCO, and the Central Bank of Libya for comments but received no response.
The oil ministry also declined to comment.
Unlike NOC’s crude sales, which are usually routed through the central bank’s account in New York before reaching Libya’s government account, Arkenu’s payments were reportedly sent to accounts at Dubai’s Emirates NBD and Geneva-based Banque de Commerce et de Placements SA.
The U.N. report noted that Haftar’s forces have received backing from Egypt, Russia, and the United Arab Emirates. His grip over eastern Libya, including key oilfields, has enabled him to exert influence over the country’s oil revenues.
Arkenu was also granted a partnership in Libya’s major Sarir and Messla oilfields, according to a July 10 letter from NOC.
These fields, operated by AGOCO, produce about 300,000 barrels per day of high-quality crude the same grade Arkenu has been exporting.
Cater also raised concerns about Arkenu’s role in these oilfields.
“There seems to be no evidence that Arkenu has actually performed any services or development work at the Mesla and Sarir oil fields,” he stated.
“As a result, Arkenu’s claims to hundreds of millions of dollars from the NOC, paid in the form of oil export cargoes, raise serious red flags for potential corruption.”
In addition to its involvement in Sarir and Messla, Arkenu was named as a partner in the Sultan, Latif, and Tahara oilfields through a cabinet decision in November 2023.
The U.N. report also mentioned that armed faction members were placed in key positions within the NOC as part of a broader reshuffle, which included the creation of a new office overseeing agreements with private companies.
This development marks a significant shift in Libya’s oil sector, with private entities now involved in crude exports and revenue distribution—a development that could further deepen the country’s long-standing political and economic divide.
