Several Arab dailies have cited a United Nations report to implicitly accuse Saddam Haftar, the son of Khalifa Haftar, the leader of the illegitimate armed forces in eastern Libya, of "smuggling" oil through indirect influence via a private oil company engaged in "crude sales."
The Asharq Al-Awsat website reported on Feb. 23, that a Libyan company linked to the putschist Gen. Khalifa Haftar, who controls eastern Libya, has exported at least $600 million worth of oil since May, according to shipping records and U.N. experts.
The report stated that Arkenu Oil, a relatively obscure company founded in 2023, may be facilitating diverting some of Libya’s oil revenues away from the Central Bank of Libya.
For its part, The Arab Weekly stated on Feb. 18 that Arkenu is indirectly controlled by Saddam Haftar, who serves as chief of staff of the ground forces of the so-called Libyan National Army, according to the U.N. Panel of Experts.
Reuters previously investigated the company and, based on shipping documents and data from the London Stock Exchange Group (LSEG) and Kpler, found that some oil revenues are being "redirected away from the Central Bank of Libya." Meanwhile, the investigative organization, The Sentry, raised "significant concerns about potential corruption."
The Saudi newspaper Asharq Al-Awsat reported that the U.N. document underscored Saddam Haftar’s appointment to his military post in May last year, allowing him to strengthen his control over Libya’s relations with neighboring countries and its economic interests, according to experts.
Since the fall of Muammar Gaddafi in 2011, Libya has been plagued by conflicts between armed factions and remains deeply divided. An internationally recognized government operates in Tripoli in the west, while illegitimate forces led by Haftar control the country's east.
Haftar’s forces, which control most of Libya’s oil fields, have periodically shut down production or exports, most recently in August last year, to ensure funds continue flowing to the east.
The Arab Weekly reported that journalists were unable to determine the owners of Arkenu, but a U.N. Panel of Experts stated in a report submitted to the Security Council on Dec. 13 that the company is indirectly controlled by Saddam Haftar, the son of Khalifa Haftar.
Arkenu is headquartered in the coastal city of Benghazi in eastern Libya, which is under Haftar’s control, according to the company’s website.
Since he was appointed chief of staff of ground forces in May last year, Saddam Haftar has strengthened his control over the army’s economic relations and its dealings with neighboring countries, according to the U.N. report.
Arkenu was first linked to oil exports when it was awarded ownership of a May shipment by the Arabian Gulf Oil Company (AGOCO), a subsidiary of the National Oil Corporation (NOC), according to a document dated July 11, reviewed by Reuters.
Reuters also reported that Arkenu has exported seven oil shipments since July 11, 2024, bringing its total exports between May and December 2024 to 7.6 million barrels, valued at approximately $600 million based on average monthly Brent crude prices.
Despite Libya’s ongoing turmoil since Moammar Gadhafi’s overthrow, oil exports have remained under central government control. The National Oil Corporation, which has long operated independently and maintained political neutrality, still accounts for the majority of the country’s exports. It shipped approximately 264 million barrels of oil worth nearly $21 billion during the same period that Arkenu conducted its eight shipments, according to Kpler data.
