The Libyan government has threatened to attack a North Korean tanker if it does not leave an oil terminal in Sidra.
Libyan rebels have bypassed the government, and are allegedly trying to export oil to Pyongyang themselves.
The ship has begun loading oil according to port officials.
Armed militias have seized control of three major ports in the oil-rich East since August, including Sidra. They want autonomy for their own state known as Barqa.
The rebels have formed their own oil company and a shadow regional-government.
Al Jazeera's Joanna Blundell reports.