CAPITOL HILL, Monrovia – The Authorities of Liberia’s much-touted oil take care of Oranto Petroleum is dealing with escalating pushback on the Legislature, as extra senators increase issues over what they describe as weak fiscal phrases, authorized inconsistencies, and potential long-term dangers to Liberia’s petroleum future.
Gerald C. Koinyeneh, [email protected]
Senator Amara M. Konneh of Gbarpolu County is the most recent lawmaker to name for the outright rejection of the proposed Manufacturing Sharing Contracts (PSCs). Konneh, who chairs the Senate Public Accounts Committee, says the monetary construction of the deal exposes Liberia to “severe fiscal and operational dangers,” particularly in how the signature bonuses are structured.
He argued that regardless of the Govt Department saying a signature bonus of US$3.75 million per block—a complete of US$15 million—the PSCs solely require Oranto to pay US$1.25 million per block inside 120 days after ratification. The remaining US$10 million has no fastened deadline, as it’s tied to future seismic work that specialists say may take years—if it occurs in any respect.
“This loophole permits the corporate to delay or keep away from funds,” Konneh warned.
A Troubled Observe Report
Konneh famous that Oranto Petroleum has a protracted historical past of nonperformance each in Liberia and throughout Africa. He recalled that in 2007, Oranto acquired offshore blocks in Liberia however by no means drilled a single effectively earlier than promoting the rights to Chevron, incomes over US$100 million. Liberia, he stated, acquired nothing from the transaction—not even jobs for Liberians, a few of whom allege they have been by no means paid for work accomplished with the corporate.
Throughout Africa, Konneh added, Oranto and its guardian firm, Atlas Petroleum, have proven a recurring sample of inactivity. In Uganda, Atlas held the Ngassa block for practically a decade with out drilling; the license was finally canceled. In Senegal, Oranto holds the Saint Louis Offshore Profond block however has proven no significant progress, whereas the Equatorial Guinea contract was marred by years of inactivity with repeated extensions and little to no drilling.
Trade trackers comparable to Africa Intelligence have repeatedly reported the corporate’s failures.
“The sample is evident—they safe acreage, make large guarantees, then stroll away whereas profiting,” Konneh stated.
Sierra Leone Units an Instance
Referencing developments within the area, Konneh urged Liberia to comply with Sierra Leone’s lead. Simply final week, Sierra Leone canceled the exploration license of Innoson Oil and Fuel for failure to fulfill commitments. Konneh argued that Liberia should do the identical with corporations that lack credible observe data.
‘Nothing to Repair’ — Konneh Urges Full Rejection
Konneh stated the deal is past restore:
“All these points—the lengthy historical past of nonperformance, failed commitments, weak fiscal phrases, and the dearth of credible monetary ensures—level to 1 clear conclusion: Liberia can’t afford this deal. The one possibility is to reject it.”
He referred to as on his Senate colleagues to ship the contracts again to President Joseph Boakai for withdrawal.
“As somebody who helps the President’s efforts to draw funding, we should associate solely with corporations which have confirmed operational and monetary capability. Liberia deserves companions with integrity, experience, and actual assets.”
Criticism Grows Throughout Legislature
Senator Konneh joins a rising bloc demanding the deal’s rejection. Earlier, former Speaker J. Fonati Koffa and Consultant Musa Hassan Bility described the Oranto PSCs as a “corrupt and harmful” settlement.
In a strongly worded communication to the Senate’s management committees in October, the 2 lawmakers urged their colleagues to return the deal to the Govt, citing a historical past of corruption-related allegations, poor transparency, Oranto’s failure to fulfill earlier obligations and previous violations reported by ProPublica, International Witness, and Forbes
Koffa and Bility reminded the Senate that Oranto’s 2007 deal in Liberia was riddled with fraud and violations of the U.S. International Corrupt Practices Act (FCPA). Oranto allegedly made greater than US$150 million after flipping the blocks to Chevron via a “straw man” transaction involving the Canadian Abroad Petroleum Ltd. (COPL).
“If it appears like corruption, quacks like corruption, and smells like corruption, it have to be corruption,” they wrote.
Senate Listening to Raises Extra Questions
Final week’s Senate listening to on the Oranto and TotalEnergies agreements raised contemporary issues. As an alternative of focusing equally on each offers, lawmakers zeroed in on Oranto’s controversial previous, unresolved tax obligations, and the unclear advantages Liberia actually acquired when Oranto flipped oil blocks greater than a decade in the past.
Executives from the Ministry of Finance and Growth Planning, Liberia Petroleum Regulatory Authority, Nationwide Oil Firm of Liberia, and the Liberia Income Authority struggled to completely persuade lawmakers, leaving many unanswered questions. A number of senators stated they remained unconvinced about Oranto’s monetary capability and its dedication to exploration.
Unsure Destiny Forward
The Senate is anticipated to deliberate additional within the coming days, however momentum seems to be shifting towards a doable rejection of the Oranto PSCs except main adjustments or renegotiations happen.
The unfolding episode is shaping up as a major political check for the Boakai administration, which has promoted the deal as a important step towards reviving Liberia’s dormant petroleum sector.
Lawmakers, nevertheless, say they have to defend Liberia from getting into agreements that might mortgage the nation’s future.
