Voice of Libya

05/18/2025

Libya’s Descent into Chaos: The Arkenu Scandal and the Plunder of a Nation

Abdulsalam Meftah El-Salhi

Libya, a land blessed with vast oil reserves yet torn by conflict, stands on the brink of collapse. At the heart of its turmoil lies Arkenu, a shadowy Benghazi-based entity exposed as a conduit for looting the nation’s wealth. This is the story of Libya’s betrayal—and its desperate fight for survival.

Tripoli, Libya – April 30, 2025
Libya, holder of Africa’s largest oil reserves, is spiraling toward an unprecedented economic collapse. Its resources are bled dry by rampant corruption, oil smuggling, and geopolitical interference. Central to this crisis is Arkenu, a company accused of illegally exporting oil, costing Libya billions. On April 30, 2025, a televised clash between the Prime Minister and oil officials revealed either complicity or incompetence, sparking public outrage. Drawing on open-source intelligence and multilingual reports, this investigation unveils Libya’s economic decay, Arkenu’s role, and the chilling parallels with John Perkins’ “Economic Hit Men” model, where global powers exploit resource-rich nations into submission.

The Arkenu Scandal: Plundering Libya’s Lifeline
In a televised meeting on April 30, 2025, the head of the National Oil Corporation (NOC) faced questioning from the Prime Minister of the Government of National Unity about Arkenu, a company accused of funneling oil through illicit channels, with the acting Oil and Gas Minister in attendance. Seemingly deflecting blame, the Prime Minister claimed the NOC had praised Arkenu as a vital partner, demanding clarity: “You said Arkenu would strengthen our oil sector. Tell the people what this company is and why it was chosen”.

The NOC head, described in scattered commentary as “incompetent” and “empty,” insisted Arkenu’s contracts were “legally sound,” offering no details on its unauthorized exports or shady financial dealings. The acting Oil and Gas Minister echoed the NOC’s stance, claiming the contracts were vetted, raising suspicions about his awareness of the violations.

“The review committee is a sham to shield corruption networks” – Angry citizens

Public fury erupted. Many branded the Prime Minister’s proposed review committee a “ploy” to protect entrenched corruption, while others demanded Arkenu’s contracts be scrapped and the NOC’s authority restored.

Originally posing as a geological research firm, Arkenu morphed into a tool for covert oil deals tied to eastern Libya’s military leadership. A UN report revealed Arkenu exported $460 million in oil in 2024 under a government deal lacking transparent bidding.

Since 2023, it has shipped eight cargoes worth $600 million, with profits funneled to accounts in the UAE and Switzerland, bypassing NOC oversight. Satellite imagery from March 2025, cited in regional media, captured nighttime oil transfers at the Sharara and Waha fields, with 38 tankers hauling 30,000 tons of undocumented fuel, costing Libya $35 million in eastern ports alone.

International reports warned of Arkenu’s ties to “influential figures,” with protection from eastern authorities and oversight of its logistics. The company evades NOC audits, routing payments through Dubai-based shell entities.

European media linked Arkenu to Maltese intermediaries, implicating them in laundering profits via Naples-based firms tied to organized crime, echoing the 2017 “Dirty Oil” probe. This network threatens Libya’s $17 billion oil industry.

Financial Catastrophe: The Numbers Speak
Libya’s economic indicators paint a grim picture. In 2025, the Central Bank sold $5.6 billion in foreign currency, including $3.3 billion for personal needs and $2.3 billion for letters of credit.

Oil revenues, comprising 94% of state income, are collapsing. From March 1–17, exports yielded just $788 million, covering 34% of currency sales, creating a $1.512 billion shortfall. Reserves, once $50 billion in 2020, are eroding fast.

A 13% dinar devaluation in April 2025 fueled 3.7% inflation. A 40% fuel shortage in Tripoli and Zawiya inflated black-market prices 3.5 times.

Oil smuggling worsens the hemorrhage. In 2024, Libya lost $7 billion—25% of oil revenues—to smuggling, rising to $8.5 billion by March 2025. Networks of militias, Emirati, Turkish, and Maltese firms, and Russian brokers use “ghost tankers” to siphon fuel from Benghazi and Tobruk.

A March 2025 European report exposed $220 million in smuggling profits laundered via Turkish cryptocurrency platforms. The Libyan Investment Authority, managing $68–70 billion in frozen assets, lost $5–7 billion since 2011 to fraudulent deals. In March 2025, the Libyan Post Company wired €17 million to a Swiss intermediary without records.

The Perkins Model: Libya in the Crosshairs of Economic Hit Men
John Perkins’ Confessions of an Economic Hit Man details how “Economic Hit Men” ensnare resource-rich nations with debt to plunder their wealth. Libya, with 48 billion barrels of oil and $6.3-per-barrel production costs, is a prime target. Perkins outlines four stages: asset theft, economic collapse, debt traps, and impoverishment. Libya is mired in the first two, with the third looming.

Asset Theft:
Arkenu and similar schemes embody this phase. Corrupt elites, backed by foreign actors, divert oil revenues to offshore accounts. The Libyan Investment Authority’s $5–7 billion loss and Arkenu’s $600 million in illegal exports reflect systematic looting, enabled by financial hubs in Dubai, Malta, and Switzerland. Russian mercenaries print counterfeit dinars and smuggle fuel, converting profits to dollars on the black market.

Economic Collapse:
Libya’s economy is crumbling. The Central Bank’s $224 billion dinar outlay fuels inflation. 70–80% of Tazerbo, Derna, and Jalu residents live below the poverty line. Youth unemployment soars, and 2.2 million public sector workers strain the budget. Political division and Tripoli clashes in January 2025 hinder reform.

Debt Trap (Emerging):
Libya has avoided massive loans thanks to oil income, but talks with bodies like ESCWA signal risks. A 2025 Central Bank deal with a U.S. firm to track dollar transfers raises fears of foreign control. Annual corruption losses, estimated at $7–10 billion, expose Libya’s vulnerability.

Impoverishment (Looming):
Rising poverty (20% in southern regions) and fuel shortages foreshadow this stage. A debt trap could divert oil revenues to interest payments, gutting public services, as seen in Perkins’ Ecuador case. Libya’s lack of economic diversification heightens risks.

Geopolitical Battleground: Libya Under Fire
Libya is a geopolitical arena. The U.S., Russia, Turkey, Italy, and the UAE vie for its oil and Mediterranean position. A U.S. naval visit to Tripoli on April 20, 2025, aimed to counter Russian gains, with 2,000 Russian mercenaries controlling eastern oil sites.

Moscow’s plan for a Tobruk naval base threatens European energy markets. Turkey, with $2 billion invested, stations forces in western Libya. The UAE brokers ties between factions, favoring economic dominance. Italy monitors energy and migration from Misurata.

Arkenu is tied to Russian and Emirati interests, with logistics linked to Russia and Emirati firms enabling its Dubai accounts. Turkey’s role in laundering smuggling profits via crypto platforms deepens Libya’s wounds.

April 30 Meeting: A Farce of Accountability
The April 30 meeting was a missed opportunity. The Oil Minister’s claim of Arkenu’s legality ignored documented breaches. The Prime Minister’s review committee was dismissed as a delay tactic.

Scattered posts cited a former Oil Minister’s accusations that the Prime Minister bypassed the Oil Ministry to establish Arkenu, violating oil laws. Some called Arkenu’s impact “catastrophic,” noting oversight bodies’ paralysis due to the scandal’s global reach.

“Arkenu is a national disaster, and officials are either complicit or powerless” — Public commentary

A 2023 revenue-sharing deal and Central Bank reunification now appear complicit in Arknu’s rise.

A Way Out: Defying the Economic Hit Men Playbook
Libya’s survival hinges on rejecting Perkins’ model. Nigeria recovered $2.4 billion in looted funds, and Peru retrieved $33 million with Swiss aid. Libya’s odds (15–25%) depend on:

Halting Illegal Exports:
Cancel Arkenu’s contracts and reaffirm NOC’s monopoly.

Combating Corruption:
Strengthen judicial independence and pursue stolen assets.

Economic Diversification:
Invest oil revenues in infrastructure and small businesses.

Unified Governance:
Resume UN-backed elections to end division.

While a 6.9% growth forecast for 2025 is technically feasible—assuming sustained oil output at 1.4 million bpd—it remains an improbable outcome given the entrenched political inertia and lack of strategic will within the ruling elite.

Conclusion: A Nation Betrayed
The Arkenu scandal, exposed in the failed April 30 meeting, is a symptom of Libya’s deeper malaise: a nation bleeding from greed and betrayal. The NOC head’s hollow response and the Prime Minister’s evasive tactics reveal a leadership either complicit or impotent.

Perkins’ model illuminates Libya’s plight:

a resource-rich state ravaged by internal traitors and foreign predators. As oil wealth vanishes, poverty surges, and geopolitical vultures circle, Libya faces a stark choice—confront corruption and unite, or succumb to economic annihilation.

Libyans fight for their future, but time is running out.

05/05/2025

"Two important points become clear here: Arkeno, the first private oil company in Libya, awarded Schlumberger (SLB), a multinational company, an integrated production services contract for a minimum period of eight years.

First, the National Oil Corporation (NOC) granted the concession to Arkeno before any relationship existed between Arkeno and SLB. The Chairman of the NOC claimed that the primary reason for granting Arkeno this concession and the joint venture agreement between it and the NOC was the anticipated presence of SLB as a partner.

Second, there is no partnership in the legal sense between Arkeno and SLB. Rather, Arkeno awarded a subcontract to SLB because Arkeno lacked the capabilities and expertise to carry out the work awarded to it under its contract with the NOC. If we put this fact in the hands of the Libyan people first and the administrative oversight bodies in Libya second, we hope that there will be an investigation and accountability, because silence on such actions, I assure you, will lead to similar procedures and decisions in the near future which will squander the right of the Libyan people to their only and main source of income, which is oil."

05/05/2025

WFP Libya Country Brief, March 2025

n Numbers

12.646 people assisted in March 2025.
90.934 mt of food distributed.
USD 64.650 in cash-based transfers distributed.
USD 19.2 six-month funding requirement from April to September 2025.
Operational Updates

Emergency Sudanese Refugee Response

By the end of March, the United Nations High Commissioner for Refugees (UNHCR) estimated that nearly 256,000 Sudanese refugees had arrived in Libya since the start of the conflict in April 2023.
According to UNHCR, the continued influx of Sudanese refugees is driving increased needs across the health, WASH, cash, food and shelter sectors. Refugees show concerning health conditions and require immediate assistance, including nutritional support.
During March, in line with the Libya Sudanese Refugee Response Plan for 2025, WFP continued its assistance for Sudanese refugees in Libya. This included:
84.8 mt of in-kind food assistance to 6,980 people (1,396 households) in the south region.
Nutritional assistance to 957 children under five and 538 pregnant and breastfeeding women through lipid-based nutrient supplements and date bars.
Provided USD 64,651 in cash-based transfers (CBTs) to 5,666 vulnerable Libyans in Benghazi, Sebha and Azzawya as part of its planned support to host communities.
In March, funding shortfalls limited WFP’s ability to deliver assistance, which was prioritised for the most vulnerable families. WFP may be forced to suspend refugee assistance in June unless new funding is received from donors.
Additional Emergency Assistance

WFP is supporting AI Qatroun municipality to strengthen its capacity to absorb the increasing influx of Sudanese refugees into the municipality by rehabilitating five community-based bakeries, targeting approximately 450 host community and Sudanese refugee families. As of March, bakery equipment has been delivered and testing and commissioning are planned, while light maintenance is nearing completion.
Assessment and Monitoring

Preliminary results from WFP's March 2025 Market Price Report show a 2.2 percent increase in market prices nationwide, bringing the national full Minimum Expenditure Basket (MEB) price to LYD 902.92 (USD 165.69). The increase was seen across all regions, breaking a two-month streak of declining market prices. The Western region recorded the highest increase (2.9 percent to LYD 867.91), closely followed by the South (2.8 percent to LYD 955.28), while the East recorded the lowest increase (1.3 percent to LYD 887.75).
WFP’s Community Feedback Mechanism continues to provide direct engagement and support to beneficiaries, with 1275 calls received in March. 98 percent of calls were from Sudanese refugees (72 percent females), of which 94 percent were requesting food assistance.
During March, WFP's third-party monitoring partner, Moomken, conducted four visits to emergency distribution sites in Ubarai, Southern Region; four CBT visits in Benghazi, Azzawiya and Sebha; and 21 price market visits and one warehouse visit in Tripoli.

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05/05/2025

Libya’s fragile transition plagued by deepening economic and political divides

Nearly 15 years after Muammar Gaddafi's fall and the emergence of rival administrations in 2014, the country remains divided. The internationally recognised Government of National Unity (GNU) is based in Tripoli in the northwest, and the Government of National Stability (GNS) is based in Benghazi in the east.

“Every day, ordinary Libyans face recurring crises, whether economic, security, or political,” Hanna Tetteh, Special Representative of the UN Secretary-General for Libya, told ambassadors in the Security Council on Thursday.

She said that most Libyan leaders agree on the need for an inclusive political process, ending unilateral actions, unifying institutions, and restoring stability. Some believe a new unified government is the solution, while others argue it could extend the transition.

Similarly, though there is consensus on holding elections, opinions differ on whether a constitutional framework should precede them.

“Political will for compromise is crucial to develop a consensual roadmap resolving Libya’s political crisis and completing the transition. Elections must be integrated into a comprehensive political framework promoting state-building by unifying and strengthening institutions,” Ms. Tetteh added.

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05/05/2025

Libya's UN Mission's panel finalizes a set of options to resolve election issues.

TRIPOLI, May 2 (Reuters)—The U.N. Mission in Libya said on Friday that its advisory committee finished its consultations and finalized a set of options to address contentious issues in Libya's current electoral framework. The mission will start talks with Libyan stakeholders based on these options.

The Advisory Committee was formed by UNSMIL in February to propose ways to resolve the issues hindering the holding of long-awaited national elections.

05/05/2025

05/03/2025

Request for Evidence Regarding Arkeno's Activities and Schlumberger Partnership

As part of our investigation into Arkeno’s operations and its collaboration with Schlumberger, we are compiling a formal submission for review by:

1. The Federal Trade Commission (FTC)
2. The U.S. Department of Justice (DOJ)

We urge anyone with relevant documents, audio recordings, or video evidence to share them with us within 10 days of this notice.

Your cooperation is greatly appreciated.

05/01/2025

Our letter was sent to Schlumberger to investigate its partnership with Arkenu Oil Company.

Prime Minister Abdul Hamid Dabaiba held an expanded meeting yesterday at the Libyan National Oil Company headquarters, attended by the Chairman of the Audit Bureau, the Acting Minister of Oil, and the National Oil Company. During this meeting, Mr. Abdul Hamid Dabaiba spoke about the corruption accusations made by the Libyan public and a few Libyan oil experts. These corruption accusations were widely circulated on social media pages concerning the new partner of the National Oil Company - Arkenu Oil Company- demanding that Mr. Masoud Suleiman and the Minister-designate, Khalifa Abdul Sadiq, disclose the company's identity.

The Prime Minister said that officials in the sector praised this company and informed him that it is one of the leading companies and even the best oil company in the world. According to the strategy of the National Oil Corporation, this will enable the oil sector to achieve part of its targets in increasing production. Based on this claim, Mr. Dabaiba said he gave his blessings by signing the partnership agreement between the two companies.

In response to the Prime Minister's question, the Libyan National Oil Company (NOC) Chairman stated that Arkenu Oil was selected after being awarded the contract through a competitive bidding process among more than eighty other local companies. The reason for choosing this newly established company (founded in 2023) was that it was tied to Schlumberger through a business partnership.

Please kindly allow us to pose some questions and inquiries regarding the partnership between your esteemed company and Arkenu Oil, which was discussed by the Chairman of the Libyan National Oil Company and the Minister of Oil in the Government of National Unity.

04/12/2025

Political and Economic Instability:
There are ongoing concerns about the Libyan currency crisis and the effects of parallel spending.
Political divisions persist, with tensions between the Government of National Unity (GNU) and the House of Representatives.
There are reports of discussions regarding the devaluation of the Libyan Dinar.
There are also reports of calls for a unified government.

Migration and Security:
Libyan authorities continue to detain migrants in anti-trafficking operations, highlighting the ongoing migrant crisis.
There are concerns about the increasing number of Sudanese migrants crossing the border into Libya.
There are reports of security clashes taking place in Libya.

International Relations:
Libya is engaging in discussions with neighboring countries, such as Algeria, on matters of cooperation.
There are reports of discussions between Libya and Turkey to increase cooperation.
There are also reports of European ambassadors criticizing Libyan internal security agency actions against NGOs.

Infrastructure and Economy:
Efforts, including road development projects, are ongoing to prepare for Tripoli International Airport's reopening.
Reports of Oil and gas investments are being made.
There are also reports of Libyan companies achieving record export numbers.

Humanitarian concerns:
Libyan Authorities Recover 11 Migrant Bodies from Mass Grave
Reports of the detention of large numbers of migrants

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04/08/2025

Tripoli, Libya - In a significant move toward economic recovery, Libya has launched its first oil bid round in 18 years, offering production-sharing contracts to international energy companies. The move comes as the country seeks to revitalize its oil sector, a crucial pillar of its economy, which has been plagued by years of conflict and instability.

The Bid Round

The bid round, organized by the National Oil Corporation (NOC), will offer access to several offshore and onshore blocks within Libya's vast oil reserves. The NOC has stated that it is looking for "reputable international oil companies" with experience in operating in complex environments. The bid round is expected to attract significant interest from major oil and gas companies, as Libya possesses substantial untapped oil reserves.

Production Sharing Contracts

The NOC has opted for production sharing contracts (PSCs) as the preferred model for this bid round. PSCs are a type of agreement between a government and an oil company, where the company invests in exploration and production activities in exchange for a share of the oil produced. This model has gained significant popularity in recent years, as it enables governments to share in the risks and benefits of oil exploration and production.

Economic Significance

The successful conclusion of this bid round could have a significant impact on Libya's economy. The oil sector is a major source of revenue for the country, and increased oil production could help to boost government coffers and create jobs. The bid round is also seen as a sign of Libya's commitment to economic reform and its desire to attract foreign investment.

Challenges

Despite the potential benefits, the bid round also faces challenges. The ongoing political instability in Libya could deter some investors, and the country's security situation remains a concern. Additionally, the NOC will need to ensure that the bid round is conducted transparently and competitively.

Looking Ahead

The launch of this bid round is a significant step forward for Libya's oil sector. If successful, it could pave the way for increased investment and production, providing a significant boost to the country's economy. However, the challenges facing Libya remain significant, and the success of the bid round will depend on the NOC's ability to navigate the political and economic landscape.

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04/08/2025

The Central Bank of Libya (CBL) has devalued the Libyan Dinar by 13.3%, establishing a new official exchange rate of 5.5677 dinars per US dollar. This significant economic decision is a response to the growing financial strain within the country.

The CBL has attributed the devaluation to unsustainable public spending by the parallel governments in Tripoli and Eastern Libya. CBL Governor Issa highlighted that the increased public expenditure of both governments has led to an increase in public debt.

04/03/2025

Update on the situation in Libya, April 3, 2025

Political Situation:

- International and local efforts continue to reach a comprehensive political solution that ends the political division in the country.

- There is a focus on holding presidential and parliamentary elections, but obstacles remain to this process, including disagreements over electoral laws and the constitutional framework.

- Libya and Tunisia have increased cooperation, and discussions are underway at the Ras Jedir border crossing between the two countries.

Security Situation:

- Some areas in Libya continue to witness security tensions and intermittent clashes.

- International non-governmental organizations have been banned for security reasons.

- The perpetrator of the Sarraj area murder was arrested eight hours after the crime was discovered.

- An armed robbery gang was arrested in Tripoli.

Economic Situation:

- The National Oil Corporation continues to work to secure oil revenues, Libya's main source of income.

- US tariffs imposed on Libya.

- Brega Oil and Gas Marketing Company warns against handling beige gas cylinders.

- Al-Jahimi warned that the future of the Libyan dinar is uncertain and that comprehensive economic reform is the solution.

Other issues:

The spread of desert locusts in southern Libya poses a threat to the environment.

- Italy allocates 20 million euros to repatriate hundreds of migrants from Libya, Algeria, and Tunisia.

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