Arkenu Oil Company, a private firm based in eastern Libya, has broken the 54-year monopoly of the state-owned National Oil Corporation (NOC) over the country’s oil exports. The NOC had controlled Libya’s oil reserves since its founding in 1970, overseeing the production of its vast oil fields.
Arkenu, established in 2023, has exported over $600 million worth of oil from May to December 2024. The firm’s rise marks a significant shift in Libya’s oil industry, traditionally dominated by the NOC.
According to shipping records and United Nations reports, Arkenu’s success signals growing control by forces loyal to the Libyan National Army (LNA), led by Field Marshal Khalifa Hifter.
Libya’s oil industry has long been central to the country’s economy, with 2023 exports totalling 432 million barrels and generating $35.8 billion. However, the political chaos since the 2011 overthrow of Moammar Gadhafi has created divisions within the country, particularly over control of the oil sector. While the internationally recognised Government of National Unity (GNU) controls the capital, Tripoli, and the western regions, the LNA controls eastern Libya and its oil fields.
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The LNA’s growing influence in the oil sector is evident as Arkenu continues to secure lucrative oil deals, including cargoes sold to international companies like ExxonMobil and Sinopec. This development comes amid ongoing instability in the country, including a central bank crisis that led to the shutdown of oil fields in August 2024. However, the appointment of a new governor in September 2024 restored some stability to the oil market, helping to ease the economic turmoil.
