The Kharafi Group, a Kuwaiti conglomerate, has obtained judicial approval to pursue assets of Libya's National Oil Corporation in France. This move aims to recover approximately $1 billion in claims stemming from a disputed tourism project that was canceled in Libya. According to reports from "The National," a Paris court ruled that the group can seize assets linked to joint ventures with French energy company TotalEnergies.
The dispute dates back to 2006 when Kharafi signed an agreement with Libyan tourism authorities to develop a five-star tourism project in eastern Tripoli. The project, which included apartments, a shopping center, and restaurants, was slated for completion within 7.5 years at an estimated cost of $130 million. However, the project was halted due to conflicting claims over land ownership and the Libyan government's eventual revocation of the project's license in 2010.
Kharafi Group sought arbitration and was awarded approximately $900 million in damages in 2013 for lost profits from the stalled project. Since then, the group has attempted to enforce the judgment by targeting Libyan state assets abroad. Previous attempts to seize a luxury aircraft used by former Libyan leader Muammar Gaddafi and assets of the Libyan Investment Authority were unsuccessful.
The group shifted its focus to assets of the National Oil Corporation, and in 2022, a French court ruled that the corporation represents an extension of the Libyan state. This ruling made its assets eligible for seizure to settle the debt. In July 2025, Kharafi obtained approval to seize the National Oil Corporation's stake in joint projects with TotalEnergies.
The National Oil Corporation's assets in France, including those related to joint ventures with TotalEnergies, are now subject to seizure. The corporation does not hold shares in TotalEnergies itself. The dispute and subsequent court rulings highlight the complexities of international arbitration and asset seizures in the context of state-owned entities.
The current amount owed to Kharafi, including accrued interest, stands at approximately $960.2 million. Libyan authorities have expressed their intention to contest the ruling, with multiple legal avenues still available for appeal. The case underscores the ongoing challenges in resolving disputes between international corporations and state entities.
This development may have implications for Libya's National Oil Corporation and its international partnerships. The corporation plays a critical role in Libya's economy, and any disruption to its operations or assets could have far-reaching consequences. The case also highlights the risks faced by international companies investing in Libya and the complexities of navigating the country's legal and regulatory environment.
Key points
- A French court has granted Kharafi Group permission to seize assets of Libya's National Oil Corporation to recover nearly $1 billion in disputed claims.
- The dispute stems from a canceled tourism project in Libya, for which Kharafi was awarded $900 million in damages in 2013.
- The current amount owed to Kharafi, including accrued interest, stands at approximately $960.2 million.
