Summary:

On 2 April 2026, Prime Minister Abdulhamid Dbeibah instructed the National Oil Corporation to begin terminating the development agreement between the Arabian Gulf Oil Company (AGOCO) and Arkenu, a private oil firm rumored to be “indirectly controlled” by the Haftar family in Libya’s east.  

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According to the public sources, the decision comes after widespread public opposition and controversy surrounding the deal. In an official letter, the GNU noted that the corporation struggled to defend the agreement and highlighted Libya’s rising public debt, largely due to spending outside the state budget.  

He emphasized that the termination must follow legal and contractual procedures to protect Libya’s interests and referred the directive to the Office of the Attorney General. The prime minister also called for regulatory and auditing bodies to review all NOC development contracts and take any necessary legal action. 

On 5 April 2026, NOC chairman Masoud Suleiman announced the transfer of oil revenues to the Libyan treasury with, for the first time, no deductions.

Outlook: 

The effort to terminate the AGOCO-Arkenu agreement highlights Libya’s deep divisions, with eastern Haftar-aligned forces controlling key oil infrastructure and the Tripoli-based GNU seeking to assert greater control over state finances.  

The move reflects Prime Minister Dbeibah’s efforts to assert authority, restore the National Oil Corporation’s control over the sector, and shape the international narrative about the direction of Libya’s economy amid domestic criticism over economic hardships.  

The ability to enforce Dbeibah’s termination order remains uncertain, as eastern-based companies could continue operations or renegotiate quietly, potentially requiring international pressure to achieve tangible results. Dbeibah’s decision underscores that oil remains a political tool tied to factional power and revenue control, while also carrying risks of legal disputes, production disruptions, and heightened east-west tensions. 

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