Libya’s Arkenu Oil Deal Still Unresolved

Energy: Libya

Libya’s prime minister ordered an end to a disputed oil deal in April, but it is still unclear whether the deal has ended.

What Was Ordered

On 2 April 2026 Prime Minister Abdulhamid Dbeibah directed the National Oil Corporation (NOC), Libya’s state oil company, to start immediate procedures to terminate the development agreement between the Arabian Gulf Oil Company (AGOCO), an NOC subsidiary, and a private firm called Arkenu. He said the termination must follow legal and contractual rules and copied the directive to oversight bodies.

He also asked regulatory and auditing bodies to review all NOC development-related contracts. The order followed widespread public opposition and controversy over the deal.

Is the Deal Over?

Reports differ on the wording of the order, with some outlets saying terminate and others saying suspend. An Arabic-language report of 13 April 2026, based on a leaked shipping document, said exports of Arkenu crude continued through the NOC despite the order.

We could not verify that document or confirm that the order has been carried out. The NOC and the government have not been shown to have said the deal is closed.

A Reported Demand From Misrata

Libyan news outlets reported on 10 November 2026 that the Misrata Military Council, an alliance of armed groups in the western Libyan city of Misrata, demanded the immediate end of the deal and the suspension of Arkenu’s oil shipping and marketing rights. We have not seen the statement on the council’s own channels, so we attribute it to those reports.

Why It Matters for Oil Markets

Libya holds Africa’s largest proven oil reserves, about 48 billion barrels at the start of 2024 according to the US Energy Information Administration, so contract fights over its fields can weigh on output plans and investor confidence. The country has had rival governments in the west and east since 2014, and armed groups from cities such as Misrata hold real power, as our guide to who runs Libya’s economy explains.

For US readers the point is political risk in a major African oil producer. A public demand from an armed Misrata bloc could add pressure on a deal that the government has already moved to end.

What Is Not Known

It is not confirmed that the April order has been carried out, and we have not seen the Misrata Military Council’s statement on its own channels. The terms of the AGOCO-Arkenu agreement have not been published in the reports we reviewed.

What to Watch Next

Watch for a statement from the NOC or the government on whether the deal is closed, and for any word from oversight bodies on their review of NOC contracts. Our earlier report on Libya’s October oil revenue gives the financial backdrop.

Frequently Asked Questions

What is the AGOCO-Arkenu agreement?

It is a development agreement between the Arabian Gulf Oil Company (AGOCO), a subsidiary of Libya’s National Oil Corporation, and the private firm Arkenu. Prime Minister Abdulhamid Dbeibah ordered the corporation to begin ending it on 2 April 2026.

Has the deal been ended?

That is not confirmed. Some outlets reported the April order as a suspension, and an Arabic-language report said exports of Arkenu crude continued.

Who is the Misrata Military Council?

It is an alliance of armed groups in the western Libyan city of Misrata. Libyan news outlets reported on 10 November 2026 that it wants the deal ended.

Sources: Directive of Prime Minister Abdulhamid Dbeibah to the National Oil Corporation, 2 April 2026, as published in Libyan reports; US Energy Information Administration, Libya country analysis, December 2024.

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