Libya Shifts Fuel Supply Toward Western Traders, Reducing Dependence on Russia

By Racheal Nagawa

Libya has awarded major fuel supply contracts to leading Western energy firms, marking a notable move away from Russian imports as the North African nation continues restructuring its oil sector.

Companies including Vitol, Trafigura, and TotalEnergies secured rights to deliver gasoline and diesel cargoes to Libya, giving Western firms greater access to the country’s downstream market while limiting Moscow’s influence. The shift comes amid a broader overhaul of Libya’s energy industry aimed at boosting production and attracting foreign investment.

Libya, Africa’s second-largest oil producer, currently pumps around 1.4 million barrels of crude per day but lacks sufficient refining capacity, making it heavily reliant on imported fuel. The country has been gradually rebuilding its energy infrastructure following the 2011 fall of Muammar Gaddafi and years of internal instability.

According to sources familiar with the tender results, Vitol alone won rights to supply between five and ten gasoline cargoes per month, along with diesel volumes. Trafigura and TotalEnergies also secured allocations, while the state-owned National Oil Corporation (NOC) awarded tenders to OMV, BGN, and Italian refiner Iplom.

The new system replaces Libya’s previous practice of trading crude exports for imported fuel and aligns with ongoing upstream licensing rounds—the first in two decades—as the government seeks to raise production to 2 million barrels per day.

Russian supply declines

Trade patterns are already shifting. Analytics firm Kpler reports that Russian fuel shipments to Libya dropped sharply to about 5,000 barrels per day in 2026, down from roughly 56,000 barrels per day in 2024 and 2025 when Russia was the dominant supplier. Mediterranean refiners, particularly in Italy, have stepped in to fill the void, exporting around 59,000 barrels per day, much of it through facilities linked to Vitol and Trafigura.

Libya is also recalibrating its crude export strategy. Western traders, including Swiss firm Transmed Trading, are gaining lifting rights, reducing previously dominant positions held by Russian-backed companies such as BGN.

In January, Libya reinforced its pivot toward Western partners with a 25-year oil development agreement with TotalEnergies and ConocoPhillips, backed by over $20 billion in foreign investment. These moves collectively signal a decisive realignment in Libya’s energy relationships, strengthening Western commercial presence while steadily eroding Russia’s prior dominance in the country’s fuel supply chain.

About the Author

Racheal Nagawa is a senior reporter at Business Express Magazine with over a decade of experience covering business, finance, economy, entrepreneurship, and African lifestyle across both print and electronic media.