Libyan traders bring in Western traders to counter Russian fuel flow
Three trading sources have confirmed that global oil traders and firms including Vitol Trafigura, and TotalEnergies won the tenders for supplying gasoline and diesel to Libya. The country is allowing large Western companies a broader access and reducing its imports of Russian petrol. Libya has been overhauling its oil industry for 15 years, following the fall of Muammar Gadhafi. It produces 1.4 million barrels of crude oil a day, but does not have the refinery infrastructure necessary to process it. This leaves it dependent on fuel imports. Africa's second largest oil producer has changed the way it buys fuel and sells oil after issuing the first upstream licensing round in 20 years.
Instead of swapping crude exports for fuel imports, the country has awarded tenders in order to meet its fuel requirements.
Three traders who were familiar with the results of the recent tenders said that Vitol was awarded the right to supply 5-10 gasoline shipments a month, as well as some diesel volumes.
Trafigura, TotalEnergies and two other traders also claimed that they had won the rights to supply fuel. ? Could not determine the exact volume. Libya's National Oil Corporation, the state-owned oil company, also awarded fuel contracts to Austrian oil-and-gas firm OMV. Vitol Trafigura and TotalEnergies refused to comment. BGN, OMV, and Iplom didn't immediately respond to requests for comments.
RUSSIAN IMPORTS DROP DOWN
As Western firms source their volumes of Russian products from refineries on the Mediterranean, this will reduce imports to Libya.
According to data provided by global analytics firm Kpler, Russian fuel exports have dropped to 5,000 bpd from 56,000 in 2024-2025 when it was the main supplier.
Kpler data shows that Italy is now Libya's largest fuel supplier with 59,000 barrels per day. This comes primarily from the ISAB refineries and Sarroch ones run by Trafigura & Vitol.
After sanctions imposed on the West for the conflict in Ukraine, Moscow's refined fuels were prohibited from being sold in the West. It has therefore relied heavily upon Africa, Asia and South America to sell its fuel. Under U.S. pressure, the Kremlin's oil exports to India, Turkey and South America have also fallen. This has pushed more oil towards China.
Since the beginning of 2024, total fuel exports to Libya have averaged 186,000 bpd.
FIRMS CAN ACCESS CRUDE EXPORTS AS WELL
Sources said that Libya would also?change the way it handles crude exports.
All three traders agreed that BGN's crude liftings will fall dramatically, as the export rights of large Western players are being allocated.
Two of the three sources also said that Transmed Trading, a small Swiss-based company, purchased crude in January. It will continue to increase its volumes in the coming months. The NOC source stated that NOC still has not finalised?individual contract and specific volume,
Transmed didn't respond to a comment request. Libya signed another 25-year deal in January with TotalEnergies, ConocoPhillips and more than $20 billion of foreign investment. Reporting by Robert Harvey in London, Dmitry Zhdannikov in Moscow, Ahmad Ghaddar, and Enes Tunagur. Reporters in Moscow: America Hernandez, Shadia Narallia Ahmed Elumami, Francesca Landini. Dmitry Zhdannikov (editing), Alex Lawler, Kirovan Donovan and Kirsty Donovan.
(source: Reuters)
