Reuters: Mysterious Oil Shipments from Eastern Libya Sail to China and Europe… NOC Declines to Comment

Shipping records and UN experts have revealed that an oil company based in eastern Libya has exported at least $600 million worth of crude since May, marking the end of the National Oil Corporation’s monopoly on exports.

According to Reuters, the shipments were made by Arkino Oil, a little-known company established in 2023. These are its first-ever shipments, suggesting that some of Libya’s oil revenues are likely being diverted away from the Central Bank of Libya.

Reuters stated that it could not determine the ownership of Arkino. However, a UN expert panel report dated December 13 indicated that Arkino was indirectly controlled by Saddam Haftar, the son of Khalifa Haftar.

Charles Cater, Director of Investigations at “The Sentry,” an international political investigative group, described the situation as a “stunning precedent,” reflecting the growing influence of armed groups over Libya’s oil sector.

For this report, Reuters reviewed over 20 documents, including shipping records, government decrees, and company correspondence, and conducted interviews with diplomatic, commercial, and Libya-focused sources.

According to its website and LinkedIn profile, Arkino Oil is headquartered in Benghazi.

Reuters sent detailed inquiries via email to two addresses listed on Arkino’s website but received no response. It also attempted to contact a spokesperson for the Libyan National Army, led by Haftar, without success.

Reuters further reported that Saddam Haftar was appointed Chief of Staff of the Army’s Ground Forces last year, strengthening his control over relations with neighboring countries and economic interests, according to the UN report.

Arkino was first linked to oil exports when it took ownership of a May shipment from Arabian Gulf Oil Company (AGOCO), a subsidiary of NOC. A letter dated July 11, reviewed by Reuters, confirmed this. Since then, Arkino has exported seven additional shipments, bringing its total exports between May and December 2024 to 7.6 million barrels, worth approximately $600 million based on average monthly Brent crude prices.

A source familiar with the matter stated that U.S. firm Exxon purchased one shipment from a trader, not directly from Arkino. Unipec, the trading arm of China’s state-owned refining giant Sinopec, bought at least two shipments destined for the UK and Italy.

Sinopec did not respond to requests for comment. It remains unclear whether it purchased the shipments directly from Arkino or via a trader. NOC, AGOCO, and the Central Bank of Libya also did not respond, while the Ministry of Oil declined to comment.

Reuters noted that crude oil payments for shipments purchased by NOC are typically made in U.S. dollars to the Central Bank of Libya’s account at the Libyan Foreign Bank in New York before being transferred to the Tripoli government’s account at the Central Bank.

Shipping documents showed that payments for Arkino’s shipments were requested to be made into accounts at Emirates NBD, a bank linked to Dubai’s government, and at the Geneva-based Bank of Commerce and Investment. Reuters could not determine whether the payments were made to these accounts or where the funds ultimately ended up.

Emirates NBD stated that it could neither confirm nor deny any client relationships due to internal policies and regulatory obligations.

Reuters also confirmed that Arkino became a partner in the key oil fields of Sarir and Mesla, according to a letter from NOC dated July 10, during the tenure of its then-chairman Farhat Bengdara, who resigned last month, according to the agency.