Offshore block agreements signed as Liberia ignites O&G sector
Exploratory and production rights granted
LIBERIA: Having announced a five-year strategic plan to revitalise the country’s oil and gas sector last month, separate announcements over the last week revealed two separate deals in the offshore licence space as Liberia confirms the first upstream petroleum agreements in more than 10 years.
Yesterday four Production Sharing Contracts (PSC) were announced between the Liberia Petroleum Regulatory Authority (LPRA) and Atlas/Oranto Petroleum, granting exploratory rights over offshore blocks LB-15, LB-16, LB-22, and LB-24.
This comes on the heels of last week’s announced signing of four PSCs with TotalEnergies covering offshore Blocks LB 6, LB 11, LB 17, and LB 29 in the Liberian Basin.
“Our goal is to ensure that Liberia’s resources are managed with transparency and responsibility. These contracts will be implemented with strict standards of environmental protection, strong local participation, and clear accountability so that Liberians benefit directly from the opportunities created.”
“Our goal is to ensure that Liberia’s resources are managed with transparency and responsibility. These contracts will be implemented with strict standards of environmental protection, strong local participation, and clear accountability so that Liberians benefit directly from the opportunities created,” said President Joseph Boakai, commenting on yesterday’s signing ceremony held in Paris, France.
The contracts include a signature bonus of US$12 million and an estimated investment value of US$200 million per block.
Twenty-nine offshore blocks were made available during the latest licencing round in a bid to boost exploration and production investments in the Liberia and Harper Basins – and are being awarded on a “first-come-first-served basis.
The Government of Liberia, through the National Oil Company of Liberia (NOCAL), expressed appreciation to TGS, its long-standing geophysical and geological partner, for nearly 25 years of support in promoting Liberia’s offshore potential.
Atlas/Oranto, a privately held African oil group founded in 1991, operates in several African countries. According to the statement announcing the deal, the company’s activities will be “guided strictly by national laws and oversight to guarantee responsible exploration.”
The group, which consists of two separate companies, both founded by Prince Arthur Eze, is reported to be a privately owned Nigerian entity. Despite significant activity within the African oil sector, the company’s website does not appear functional and recent press reports seem to indicate that both the company and its founder have attracted some controversy.
“TotalEnergies is enthusiastic to be part of the resumption of exploration activities in offshore Liberia,” said Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies. “Entering these blocks aligns with our strategy of diversifying our Exploration portfolio in high-potential new oil-prone basins. These areas hold significant potential for prospects that have the potential for large-scale discoveries that lead to cost-effective, low-emission developments,” he added.
PHOTO: TotalEnergies signs agreement covering offshore Blocks LB 6, LB 11, LB 17, and LB 29 in the Liberian Basin.
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