The Arkenu Oil Company, a newly established private firm in Libya, has exported oil worth at least $600 million since May 2024, signaling a shift away from the National Oil Corporation’s (NOC) monopoly on oil exports. This development occurs under the influence of the powerful faction led by military commander Khalifa Haftar, who controls eastern Libya.
Key Highlights:
First Private Exports:
Arkenu Oil Company, formed in 2023, is the first private Libyan company to engage in oil exports.
Its shipments suggest that some oil revenue may be diverted from the Central Bank of Libya.
Political Context:
Libya has been divided since the fall of Muammar Gaddafi in 2011, with a recognized government in Tripoli and a rival administration in the east led by Haftar.
Disputes over oil revenue distribution have frequently led to production shutdowns by Haftar’s forces.
Ownership and Control:
While the ownership of Arkenu remains unclear, a U.N. report indicates it is indirectly controlled by Saddam Haftar, one of Khalifa Haftar’s sons.
The company is headquartered in Benghazi, an eastern port city, and operates from an oil terminal under Haftar’s control.
Export Activities:
Since its inception, Arkenu has exported 7.6 million barrels of oil between May and December 2024.
Notable buyers include Exxon Mobil and Unipec, the trading arm of China’s Sinopec.
Financial Transactions:
Payments for Arkenu’s oil cargoes were reportedly directed to accounts in Dubai and Geneva, diverging from the typical procedure of payments to the central bank in Tripoli.
The exact flow of funds remains unclear, raising questions about potential financial misconduct.
Partnerships and Operations:
Arkenu has partnered with the NOC in developing key oilfields, including Sarir and Messla, which account for a significant portion of Libya’s oil output.
Concerns have been raised about the legitimacy of Arkenu’s claims for payments from the NOC, particularly regarding any actual services rendered.
Influence of Armed Groups:
The U.N. report highlights the increasing influence of armed factions over Libya’s oil sector, with members of these factions being appointed to various positions within the NOC.