Libyan bloc urges action to resolve oil dispute

In Libya oil firms which try to operate outside of the scope of the national apparatus are facing increasing scrutiny.

A bloc in Libya’s High State Council has called for legal and regulatory action against Arkenu Oil Company, presenting the case as a wider test of state authority, control over oil revenues and the spread of corruption through divided institutions, as reported by Libya Herald and agencies on March 13th.

The intervention places Arkenu at the centre of a bigger struggle over the control of Libya’s energy sector and how national wealth is managed. Rather than treating the company as a mere commercial issue, the High State Council argues that its licensing and export activity reflect a deeper pattern of institutional weakness and corruption.

At the heart of the dispute is Arkenu’s rise as an exporter outside the National Oil Corporation’s traditional monopoly. This development has drawn scrutiny since Libya’s oil sector remains the country’s principal source of revenue and one of the most contested areas of power between authorities. Any arrangement that bypasses or elude established legal and financial methods risks harming the public interest.

In its statement, the National Accord Bloc accused the Government of National Unity of granting Arkenu a licence in violation of Libyan law and for the benefit of narrow political interests. It said the move had contributed to public anger at a time when Libyans are already facing economic problems, inflation and declining trust in most state institutions.

The group also said it had filed an administrative appeal before the Zawiya Court of Appeal on July 28, 2025, challenging Decision No. 544 of 2023, the decree that granted Arkenu its licence.

The bloc further urged the Attorney General and the Administrative Control Authority to investigate possible abuses linked to the company’s operations, including potential damage to the public interest and the diversion of revenues, framing the dispute not just as an oil sector dispute, but as a symbol of Libya’s wider governance crisis.

Libya Herald plus agencies, maghrebi.org