• Libya awards fuel supply contracts to Vitol, Trafigura and TotalEnergies.
• Russian fuel exports to Libya fall sharply, from 56,000 bpd to 5,000 bpd.
• Shift aligns with broader push to stabilize oil sector and attract Western investment.

Libya has awarded gasoline and diesel supply contracts to several Western groups, including Vitol, Trafigura and TotalEnergies, sources familiar with the matter told Reuters on Wednesday, February 18.

The North African country produces about 1.4 million barrels of oil per day, but its refining capacity remains insufficient to meet domestic demand. As a result, it imports a significant share of its fuel needs. Until recently, those imports relied heavily on Russian refined products, often swapped for shipments of Libyan crude.

Tripoli has now moved toward competitive tenders to secure fuel supplies, a shift that has reduced Russia’s role in the Libyan market. According to data firm Kpler, Russian fuel exports to Libya have fallen to about 5,000 barrels per day in 2026, down from an average of 56,000 barrels per day between 2024 and 2025, when Moscow was the country’s main supplier.

A Realignment of Trade Flows

The reshuffle also affects crude exports. Swiss trader BGN, long a central player in Libyan crude liftings, is losing ground to Western companies that have been granted expanded export rights.

The change comes amid a broader restructuring of Libya’s oil sector, fifteen years after the fall of Muammar el-Qaddafi and more than a decade of conflict, production shutdowns and contractual uncertainty. Authorities are seeking to stabilize operations and revive investment, with the goal of raising output to 2 million barrels per day over the medium term. That effort has included the launch of new licensing rounds, the first since 2007.

At the same time, Russia, facing Western sanctions over the war in Ukraine, has redirected refined product exports toward Africa, Asia and South America. The gradual loss of the Libyan market adds to declining sales to India and Turkey, reinforcing Moscow’s pivot toward China.

A Turn Toward Western Majors

For Libya, the greater reliance on Western partners serves multiple aims: securing fuel supplies from nearby facilities and restoring investor confidence. The shift reflects a broader opening to American and European companies, highlighted by long-term oil development agreements signed with firms such as ConocoPhillips and TotalEnergies.

The latest licensing round confirms that trend, with blocks awarded to several international majors, including Chevron. These steps have been accompanied by diplomatic outreach to Washington, including plans for a bilateral energy forum and proposals for a strategic partnership covering energy, mining and infrastructure.

The evolving strategy raises an implicit question: by moving away from Russian trade flows, is Libya also seeking to reduce exposure to U.S.-related sanctions risks, even indirectly? While not stated explicitly, the current direction suggests closer alignment with U.S. and European energy priorities in a post-Russia diversification landscape.

Olivier de Souza