Monrovia – The controversy surrounding Liberia’s current oil exploration agreements deepened on Wednesday when Sinoe County Senator Crayton O. Duncan threatened to file a lawsuit in opposition to the Authorities of Liberia if the Nationwide Legislature goes forward to ratify the Manufacturing Sharing Contracts (PSCs) not too long ago signed with Atlas/Oranto Petroleum and TotalEnergies.
By Obediah Johnson, [email protected]
His warning adopted sturdy objections raised a day earlier by former Home Speaker J. Fonati Koffa and Nimba County lawmaker Musa Hassan Bility, who described the Atlas Oranto deal as corrupt, dangerous, and unfit for ratification.
Senator Duncan, who chairs the Senate Committee on Autonomous Commissions and Businesses, delivered his assertion whereas talking at a ceremony marking the induction of newly elected officers of the Legislative Press Pool (LEGISPOOL) held on the headquarters of the Press Union of Liberia in Sinkor, Monrovia.
The senator accused the federal government of making an attempt at hand over Liberia’s oil sources to overseas pursuits by agreements that he mentioned present little or no profit to the Liberian folks.
“Sinoe County will sue the Liberian Authorities if the federal government permits this mineral settlement to proceed to undergo. If the Nationwide Legislature vote and passes it due to the bulk votes, we, within the minority, will sue them for exploitation and collaboration. That is what you need to flag out. That is what you need to struggle for. Let the oil stay if we don’t know how one can get it out. This nation isn’t just for you and me. It’s for these that aren’t but born,” Senator Duncan declared.
The senator’s risk is available in response to the federal government’s resolution to signal 4 Manufacturing Sharing Contracts with Atlas/Oranto Petroleum for offshore blocks LB-15, LB-16, LB-22, and LB-24.
The deal, which features a US$12 million signature bonus and an estimated funding worth of US$200 million per block, was offered to lawmakers alongside an analogous settlement with TotalEnergies for blocks LB-6, LB-11, LB-17, and LB-29. Each agreements have been submitted as a single bundle to the Nationwide Legislature for ratification.
Senator Duncan described the offers as exploitative concessions reasonably than real exploration agreements, insisting that they supply insufficient returns to the nation.
“We’re about to have a look at a concession that includes eight oil blocks. One block talks about part one to 4 exploration, which is mainly on exporting what amount of oil that has been found. When that one leaves the Nationwide Legislature, nothing comes again. This can be a concession, not exploration. The identical manner we’re excited that ArcelorMittal is in Nimba exporting iron ore in our nation, what’s it doing for us? It’s the stealing of what we have now that God gave us naturally that affects our lifestyle,” he mentioned.
He defined that the agreements solely assure Liberia a ten% royalty fee for oil drilled under 1,500 ft and a mere 5% for oil extracted past that depth. “These phrases,” Duncan mentioned, “would make Liberians poorer in their very own nation.” He known as on his colleagues to not rush into ratifying any deal that fails to ensure long-term nationwide advantages. “This nation is just not a one-day nation; it doesn’t start 2025 and finish 2029. This nation needs to be a continuity of the existence of the Liberian folks. We must always not rush in making choices as a result of we need to revenue from it as quickly as attainable inside our lifetime. This nation is just not poor,” he mentioned.
The senator additionally criticized the widespread mismanagement of Liberia’s pure sources, arguing that corruption solely accounts for a small a part of the issue in comparison with poor management and coverage missteps.
“Corruption contributes about 20% to the struggling of the Liberian folks, however the remaining 80% is brought on by the mismanagement of the nation’s sources,” he defined. “If we will face the 80% that’s getting used by corruption, you may be so pleased having fun with your life and can overlook that 20% of stealing from you may be like nothing to you. However when 80% is being stolen, belief me, I don’t care what you do, you’ll at all times run after the 20%.”
Senator Duncan known as on Liberians to unite in opposition to what he termed “exploiters” who disguise their pursuits beneath worldwide greatest practices. He urged residents and journalists alike to carry the federal government accountable for choices that would jeopardize Liberia’s future.
“Your life won’t ever change so long as what we’re doing continues to be the identical. We must always struggle them collectively,” he mentioned. “As journalists, your function and our function make no distinction. We’re elected to advocate for our folks; you too are chosen to advocate for the Liberian folks.”
Senator Duncan’s declaration echoes the issues expressed by ex-Speaker Koffa and Consultant Bility, who’ve been vocal in opposing the Atlas Oranto deal. In a joint letter to the Home Committees on Hydrocarbon, Funding and Concessions, and Judiciary, the 2 lawmakers warned that approving the Manufacturing Sharing Settlement with Atlas Oranto would quantity to “a dereliction of responsibility” and “a betrayal of the Liberian folks.”
They reminded lawmakers that Oranto Petroleum, a Nigerian-owned firm, was beforehand granted three oil blocks — LB-11, LB-12, and LB-14 — in 2007 beneath questionable circumstances.
Investigations performed by ProPublica, International Witness, and Forbes linked the transaction to bribery and fraud, and located that it violated the U.S. International Corrupt Practices Act. In line with the studies, Oranto revamped US$150 million by reselling these blocks to Chevron by a “straw man” firm, Canadian Abroad Petroleum Ltd., with out drilling a single nicely or making any tangible funding in Liberia.
Citing investigations similar to FrontPage Africa’s report “The Oil Block Flipper is Again,” the lawmakers described Oranto as a “intermediary” firm that flips exploration rights for revenue as a substitute of growing them. “He provides no worth or substance to the blocks he has been awarded. His faceless Liberian companions get to make thousands and thousands whereas the nation good points nothing,” they wrote.
Representatives Koffa and Bility additionally questioned why the federal government would interact an organization with no confirmed file in ultra-deep-water drilling when extra skilled international gamers similar to ExxonMobil, Chevron, Shell, BP, TotalEnergies, Petrobras, and Equinor may very well be invited to take a position. “With such an unlimited array of succesful corporations, why did the Authorities see the necessity to interact Oranto in any respect?” they requested.
The 2 lawmakers urged their colleagues to reject the deal outright and demand larger transparency and accountability within the administration of Liberia’s oil sources.
“Few moments in our sojourn as legislators would require us to face up vigorously for the way forward for this nation and the judgment of historical past. We’re afraid a type of occasions is now,” their letter learn. “Our obligation to the Liberian folks is our highest responsibility and calling. To present out a big public useful resource to an organization with no capability to carry out the contract is nothing lower than a betrayal.”
As the talk over the oil agreements continues to dominate nationwide discourse, Senator Duncan’s risk of authorized motion has additional intensified the political rigidity. His stance, mixed with the sturdy opposition from Representatives Koffa and Bility, units the stage for a serious confrontation within the Nationwide Legislature over what may grow to be one of the consequential pure useful resource choices of the Boakai administration.
