EXCLUSIVE-Libya brings in Western traders in blow to Russian fuel flows

By Robert Harvey, Ahmad Ghaddar and Enes Tunagur

LONDON, Feb 19 (Reuters) - Global oil firms and traders including Vitol, Trafigura and TotalEnergies TTEF.PA have won tenders to supply Libya with gasoline and diesel as the country grants large Western players wider access and reduces imports of Russian fuel, three trading sources told Reuters.

Libya is in the process of overhauling its oil sector 15 years after the fall of leader Muammar Gaddafi and years of civil wars. The country produces some 1.4 million barrels a day of crude but lacks the infrastructure to refine it, leaving it reliant on fuel imports.

After issuing upstream licensing rounds for the first time in 20 years in an effort to grow crude output to 2 million bpd, Africa's second-largest oil producer is now changing how it sells its oil and buys the fuel it requires.

Rather than swapping fuel imports for crude exports, it has instead awarded tenders to cover its fuel needs.

In the tenders in recent weeks, which have not previously been reported, Vitol won the rights to supply 5-10 gasoline cargoes a month and some diesel volumes, three traders familiar with the results said.

Trafigura and TotalEnergies also won the right to supply fuel, two of the three traders said. Reuters could not establish the exact volumes.

Libya's state-owned National Oil Corporation also awarded fuel tenders to Austrian oil and gas firm OMV OMVV.VI, Swiss-based trader BGN and Italian oil refinery Iplom, an NOC source said.

Vitol, Trafigura, and TotalEnergies declined to comment. BGN, OMV and Iplom did not immediately respond to requests for comment.

RUSSIAN IMPORTS DROPPING

The tenders will further reduce Russian product imports into Libya as Western firms source their volumes from refineries in the Mediterranean.

Russian fuel exports to Libya have fallen to around 5,000 bpd in 2026 from 56,000 bpd in 2024–2025, when it was the dominant supplier, according to live data from global analytics firm Kpler.

Italy has become Libya's top fuel supplier this year with 59,000 bpd, mainly from the ISAB and Sarroch refineries run by Trafigura and Vitol, the Kpler data showed.

Moscow has relied heavily on Africa, Asia and South America for fuel sales after its refined products were banned from the West under sanctions linked to the war in Ukraine.

The Kremlin has also seen its oil exports to India and Turkey fall under U.S. pressure, pushing more oil towards China.

Overall fuel exports into Libya from all sources have averaged around 186,000 bpd since the start of 2024.

FIRMS ALSO GAIN ACCESS TO CRUDE EXPORTS

Libya will also change the way it handles crude exports, the sources said.

BGN, previously a key exporter, will see crude liftings fall sharply, all three traders said, as big Western players will be allocated export rights.

Small Swiss-based trader Transmed Trading also picked up several crude cargoes in January and will keep lifting volumes in coming months, two of the three sources said.

NOC has yet to finalise individual contracts and specific volumes, the NOC source said.

Transmed did not respond to a request for comment.

Libya also signed a 25-year oil-development deal with TotalEnergies and ConocoPhillips in January, involving more than $20 billion ‌in foreign-financed investment.