MONROVIA – Liberia’s long-running quest to transition from an oil-producing hopeful to an precise producer has once more come beneath scrutiny, following stories that the federal government is getting ready to award 9 offshore petroleum blocks to 5 overseas corporations beneath circumstances critics describe as controversial.
By Gerald C. Koinyeneh, [email protected]
Whereas the federal government has pledged transparency in its renewed push to revive the offshore petroleum sector, civil society actors are questioning the credibility and technical capability of the businesses reportedly chosen for the exploration contracts.
Liberia Early Warning Watch (LEW-WATCH), a civil society monitoring group, is the most recent to lift the alarm. In an in depth report, the watchdog warned that the deliberate awards might undermine transparency and Liberia’s long-term nationwide curiosity within the petroleum sector.
Based on LEW-WATCH, Liberia’s oil business continues to be grappling with unresolved considerations surrounding the award of Blocks LB-15, LB-16, LB-22, and LB-24 to Atlas Oranto Petroleum Liberia Restricted. The group famous that Oranto’s settlement in Senegal was reportedly terminated for failure to adjust to contractual obligations. The corporate’s proprietor, Prince Arthur Ize, has additionally confronted scrutiny in different jurisdictions over alleged political connections, notably with Venezuela’s former President Nicolas Maduro.
LEW-WATCH additional alleged that senior authorities officers — together with the Ministers of Finance and Justice – Augustine Kpehe Ngafuan and Cllr. N. Oswald Tweh, the top of the Liberia Petroleum Regulatory Company (LPRA), are poised to signal new Manufacturing Sharing Contracts (PSCs) with firms it says bear similarities to Oranto by way of technical capability and operational monitor report.
The considerations come as the federal government intensifies efforts to revive Liberia’s offshore petroleum sector, which has remained largely dormant regardless of many years of licensing agreements. Critics argue that with out stringent due diligence, clear technical benchmarks, and full public disclosure, the sector dangers being dominated by politically linked intermediaries reasonably than critical exploration firms.
Beneath Liberia’s Petroleum Regulation, the LPRA leads and coordinates negotiations for petroleum agreements, the Ministry of Finance and Improvement Planning (MFDP) evaluates the monetary phrases, the Ministry of Justice ensures authorized compliance, and the Liberia Income Authority is accountable for safeguarding the nation’s tax pursuits.
When contacted for remark, the Ministry of Finance mentioned by way of its communications division that it might reply to FrontPage Africa’s inquiry sooner or later. The LPRA and the Ministry of Justice didn’t reply to emailed requests for remark as much as the time of publication.
Corporations Beneath Scrutiny
The businesses reportedly earmarked for the oil blocks embrace Binad Oil and Fuel Providers of Nigeria (Block 8), Tarrock Built-in Oil & Fuel of Nigeria (Block 9), Cabral Power LLC of america (Blocks 2, 3, and 4), Transoceanic Power Group of Nigeria (Block 27), and Liberty Petroleum of america (Block 32).
LEW-WATCH mentioned its evaluation of company data reveals that Binad Oil and Fuel Providers Ltd is primarily a logistics and normal merchandise provider to grease and gasoline firms, reasonably than an exploration agency. Based on its web site, Binad’s core enterprise contains tools provide, haulage companies, water processing methods, and normal contracting.
The watchdog argued that such a enterprise profile doesn’t meet the technical necessities for offshore oil exploration. It additionally alleged that Binad’s main shareholders are longtime associates of Prince Arthur Ize.
Cabral Power, a privately held firm headquartered in Houston, Texas, describes itself as an oil and gasoline agency centered on exploration and growth. Nonetheless, LEW-WATCH mentioned its findings recommend the corporate is an early-stage entity largely engaged in knowledge evaluation, operational consulting, and venture administration, with no verifiable report of offshore drilling operations.
Transoceanic Power Group, registered in Nigeria in September 2023, focuses totally on liquefied pure gasoline, in line with publicly accessible data. LEW-WATCH mentioned it couldn’t independently confirm the corporate’s claims of getting an operational exploration and manufacturing subsidiary.
The watchdog mentioned it was unable to seek out enough publicly accessible data on Tarrock Built-in Oil & Fuel. FPA didn’t discover Tarrock Oil & Fuel after a radical search.
Liberty Petroleum, based in 1997, beforehand held an exploration license in Liberia by way of a partnership with a neighborhood agency owned by the late McDonald Wento. That settlement didn’t take impact after fiscal necessities weren’t met. LEW-WATCH acknowledged, nevertheless, that Liberty Petroleum has since acquired exploration licenses elsewhere, together with in Somalia, and has participated in drilling packages by way of partnerships.
LEW-WATCH Warning
In a strongly worded assertion shared with FrontPage Africa, LEW-WATCH cautioned that awarding petroleum rights to firms missing technical and monetary capability might repeat previous errors which have stalled Liberia’s oil ambitions.
“Awarding petroleum rights to Oranto and corporations of its type denies the nation the chance to award the blocks to competent and credible firms that will have an curiosity in buying petroleum rights in Liberia,” the group mentioned. “These blocks will likely be beneath contract to firms with no capability to execute drilling actions.”
The watchdog warned that such preparations danger turning Liberia’s oil blocks into speculative property managed by “flippers” — corporations that purchase licenses to not develop assets however to commerce them for revenue.
“LEW-WATCH encourages high-level discussions with international companions, worldwide transparency teams, and nationwide civil society actions to stop a second spherical of skewing Liberia’s petroleum sector towards private advantages towards nationwide pursuits,” the assertion added.
Civil society organizations have repeatedly referred to as for aggressive bidding, full disclosure of petroleum contracts, and strict enforcement of technical and monetary necessities to make sure Liberia’s pure assets serve the broader public curiosity.
How did we get right here?
Liberia’s petroleum exploration historical past dates again to the Fifties, when early geological surveys urged the presence of hydrocarbons alongside the nation’s offshore basin. Preliminary exploration efforts had been restricted, largely as a consequence of insufficient expertise and low funding.
Curiosity intensified within the late Nineteen Seventies and early Nineteen Eighties as international oil costs rose. In 1978, Chevron made Liberia’s first confirmed offshore oil discovery, validating the presence of hydrocarbons. Nonetheless, the discover was by no means developed into business manufacturing as a consequence of technical challenges, excessive prices, and unfavorable market situations.
Liberia’s civil battle (1989–2003) introduced all significant petroleum actions to a standstill. Contracts lapsed, infrastructure collapsed, and investor confidence evaporated. By the top of the battle, the sector was dormant and outdated.
Following the restoration of peace, the federal government sought to revive the business by passing a brand new Petroleum Regulation in 2005. Between 2007 and 2013, a number of offshore blocks had been awarded to worldwide firms, together with Chevron, ExxonMobil, African Petroleum, and Oranto Petroleum. Liberia was grouped inside the promising West African Remodel Margin, alongside Ghana and Côte d’Ivoire, elevating expectations after Ghana’s Jubilee Subject discovery in 2007.
Regardless of in depth seismic surveys and exploratory drilling, none of Liberia’s wells resulted in a commercially viable discovery. By the mid-2010s, falling international oil costs and disappointing outcomes prompted main firms akin to ExxonMobil and Chevron to exit.
To strengthen oversight, Liberia established the Liberia Petroleum Regulatory Authority (LPRA) to control and supervise petroleum actions. Lately, new bidding rounds and contract restructuring efforts have reignited public debate, with civil society teams warning that weak due diligence and non-competitive awards danger locking Liberia’s oil blocks into the fingers of non-producing corporations.
