A report by the United Nations Panel of Experts revealed that more than 992,000 tons of petroleum products were exported illegally, with fuel smuggling in Libya continuing unchecked. National mechanisms—such as the Fuel Consumption Review Committee—have failed due to direct negative reactions from armed groups, including threats and the deliberate creation of fuel shortages.
The report noted that the Libyan Investment Authority requested the transfer of $276 million for investment, but the committee deemed it non-compliant with prior notification requirements. The issue, however, lies not in a lack of willingness but in interpretative challenges faced by countries and financial institutions in implementing the decision.
It further explained that armed groups have infiltrated the oil sector by diverting state revenues—Libya’s main natural resource and primary income source. Impunity has led to the adoption of formal procedures to approve exports, imports, exploitation agreements, and service contracts in ways that serve competing networks backed by armed groups.
The report also found that state institutions, including the National Oil Corporation and Brega Company, are no longer able to effectively monitor or control crude oil exports, revenues, imports, fuel distribution, or consumption.
According to the report, Libya’s economy depends on oil for up to 90% of its revenues, but the presence of criminal networks has led to significant leakage abroad. In 2025, revenues reached approximately $18.78 billion, despite expectations of around $27 billion based on production and prices.
The report added that the Arkno contract was implemented in a way that undermined the oversight of the National Oil Corporation and enabled large-scale illegal exports. Despite contractual commitments to invest, only a small portion was carried out, and amendments to the contract favored the company—allowing exports beyond agreed limits. These operations have strengthened the military capabilities of armed groups and threatened Libya’s political stability.
It also revealed that Libyan oil was secretly and illegally exported to multiple cities and countries via tankers linked to criminal networks or through flexible containers.
The report concluded that illegal maritime exports have continued without interruption and expanded across several ports outside the control of the National Oil Corporation. Investigators identified covert exports using concealment techniques, ship-to-ship transfers, storage in Egypt, and gray-market exports using forged documents. Diesel was mainly sold as marine fuel, with shipments reaching Egypt, Somalia, Sudan, South America, Syria, Turkey, and the UAE.
Additional exports were traced to Greece, Egypt, Belgium, Germany, Spain, and Malta, while other shipments were sent via containers to Syria, Turkey, and the UAE with falsified cargo descriptions. Some shipments were transported to the UAE via vessels linked to smuggling networks.
