Dbeibeh orders immediate termination of AGOCO-Arkenu agreement

Prime Minister Abdulhamid Dbeibeh has instructed the National Oil Corporation (NOC) to begin immediate procedures to terminate the development agreement signed between the Arabian Gulf Oil Company (AGOCO) and Arkenu, following widespread public opposition and growing controversy over the deal.

In an official letter reviewed by Libyan Express, Dbeibeh said the corporation’s inability to present a clear and convincing defence of the agreement had contributed to shifting attention away from the underlying causes of Libya’s economic crisis.

He highlighted the rapid expansion of public debt, attributing it primarily to parallel spending outside the state budget, which he said has exceeded LYD300 billion.

The prime minister stressed that the termination process must be carried out in accordance with legal and contractual frameworks to ensure that Libya’s interests are fully protected. He also called for appropriate measures to be taken regarding the partner’s position within these procedures, in a way that preserves the credibility of sovereign institutions and reinforces transparency.

Dbeibeh confirmed that a copy of the directive has been referred to the Office of the Attorney General. He renewed his call for regulatory and auditing bodies to review all contracts issued by the National Oil Corporation related to development arrangements, and to take any necessary legal action.

The move comes amid increasing scrutiny of the agreement, which has sparked debate over its legality, economic feasibility and broader implications for Libya’s oil sector.