Libya has awarded tenders to major Western oil companies and trading houses, including Vitol, Trafigura and TotalEnergies, to supply gasoline and diesel, in a move that reduces the country’s reliance on Russian fuel, three trading sources told Reuters.
The North African nation is restructuring its oil sector 15 years after the fall of former leader Muammar Gaddafi and following years of civil conflict.
Libya produces about 1.4 million barrels per day of crude oil but does not have enough refining capacity, which forces it to depend heavily on imported fuel.
After launching upstream licensing rounds for the first time in 20 years in an effort to raise crude output to 2 million barrels per day, Africa’s second-largest oil producer is also changing how it manages oil sales and fuel purchases.
Instead of swapping crude exports for fuel imports, Libya has started awarding tenders to directly cover its fuel needs.
According to three traders familiar with the recent tender results, which have not previously been reported, Vitol secured the right to supply between five and 10 gasoline cargoes per month, along with some diesel volumes.
Two of the three traders said Trafigura and TotalEnergies also won rights to supply fuel, although Reuters could not confirm the exact volumes involved.
Vitol, Trafigura and TotalEnergies declined to comment, while Libya’s state-owned National Oil Corporation did not immediately respond to a request for comment.
The new tenders are expected to further reduce Russian fuel imports into Libya, as Western companies are sourcing supplies from refineries in the Mediterranean region.
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Data from global analytics firm Kpler show that Russian fuel exports to Libya have dropped sharply to around 5,000 barrels per day in 2026, compared with 56,000 barrels per day in 2024–2025, when Russia was Libya’s main supplier.
Italy has become Libya’s top fuel supplier this year, delivering about 59,000 barrels per day, mainly from the ISAB and Sarroch refineries operated by Trafigura and Vitol, according to Kpler data.
Since Western sanctions were imposed on Russian refined products over the war in Ukraine, Moscow has increasingly relied on markets in Africa, Asia and South America to sell fuel.
The Kremlin has also faced declining oil exports to India and Turkey due to U.S. pressure, resulting in more Russian oil being redirected to China.
Overall, fuel imports into Libya from all sources have averaged around 186,000 barrels per day since the beginning of 2024.
Libya is also adjusting how it handles crude oil exports. The sources said Swiss-based trading firm BGN, previously a major exporter of Libyan crude, will see its crude liftings reduced significantly as larger Western firms are granted export rights.
Another Swiss trading firm, Transmed Trading, lifted several crude cargoes in January and is expected to continue lifting volumes in the coming months, according to two of the three sources. Transmed and BGN did not immediately respond to requests for comment.
In January, Libya signed a 25-year oil development agreement with TotalEnergies and ConocoPhillips involving more than $20 billion in foreign-financed investment.
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