PARIS, France – The Authorities of Liberia has signed a Manufacturing Sharing Contract (PSC) with TotalEnergies, marking a significant step ahead for the nation’s oil and gasoline sector. The settlement, finalized on, September 15, at TotalEnergies’ international headquarters in Paris, carries a signature bonus of US$16 million.
By Gerald C. Koinyeneh, [email protected]
The deal grants TotalEnergies exploration rights over 4 offshore blocks—LB-6, LB-11, LB-17, and LB-29—every with an estimated funding worth of US$200 million. TotalEnergies has already spent US$3.5 million buying seismic knowledge, demonstrating its confidence in Liberia’s hydrocarbon potential.
“In 2024, I invited world-class power corporations to Liberia and pledged that below my management, the nation would offer an setting the place funding thrives—anchored in ethics, the rule of regulation, worldwide finest practices, and strict enforcement of contracts to guard all stakeholders,” President Boakai stated.
He added, “The execution of those agreements with TotalEnergies demonstrates that this pledge is bearing fruit.”
As one of many world’s largest built-in power corporations, TotalEnergies operates in additional than 120 international locations with practically 100,000 workers. The French power big produces roughly 2.4 million barrels of oil equal per day—nearly half from pure gasoline—whereas increasing into renewables and electrical energy, the place it already instructions over 30 gigawatts of capability. Regardless of a softer market in 2024, the corporate posted a stable US$18 billion in revenue and continues to take care of sturdy money flows.
The settlement emphasizes capacity-building for Liberians, with devoted funding for coaching and growth initiatives. TotalEnergies’ experience throughout the West African margin positions it as a succesful companion to unlock Liberia’s offshore potential whereas balancing conventional oil and gasoline investments with low-carbon power ventures.
Representing the Authorities of Liberia on the signing had been Marilyn Logan, Director Common of the Liberia Petroleum Regulatory Authority (LPRA), Cllr. N. Oswald Tweh, Minister of Justice; Augustine Kpehe Ngafuan, Minister of Finance; and NOCAL’s President and CEO, Fabian Michael Lai.
On the signing in Paris, Marilyn T. Logan, LPRA Director Common, stated: “The signing of those PSCs with TotalEnergies ends a decade-long pause on Liberia’s offshore petroleum program, marks a constructive turning level within the nation’s power future, and stands as a vote of confidence within the reforms we now have undertaken to draw accountable operators.”
She added that the partnership affords not solely potential for useful resource growth but additionally concrete alternatives for native capability constructing, data switch, and sustainable progress for Liberia.
“TotalEnergies is enthusiastic to be a part of the resumption of exploration actions in offshore Liberia,” stated Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies. “Coming into these blocks aligns with our technique of diversifying our exploration portfolio in high-potential new oil-prone basins. These areas maintain vital potential for large-scale discoveries that result in cost-effective, low-emission developments, leveraging the Firm’s confirmed experience in deepwater operations.”
Officers say the contracts incorporate environmental and social safeguards, clear income administration provisions, and sturdy native content material necessities, guaranteeing Liberians profit immediately from sector progress. TotalEnergies’ participation reduces funding danger, raises the profile of Liberia’s basin, and lays a basis for additional worldwide curiosity.
JNB welcomes Deal
The Govt Mansion famous that President Boakai expressed full confidence within the interagency negotiation staff led by the LPRA and confirmed his administration’s readiness to signal the agreements and transmit them to the Nationwide Legislature for public scrutiny and ratification.
President Boakai counseled the LPRA for its management and acknowledged contributions from the Ministry of Finance and Growth Planning, the Ministry of Justice, the Ministry of Mines and Vitality, NOCAL, and his Particular Presidential Committee on Oil & Fuel. He careworn that their collective efforts ensured a clear, rules-based course of that efficiently attracted a world-class operator with deepwater experience, sturdy monetary capability, and a confirmed report of accountable operations.
Wanting forward, President Boakai emphasised his administration’s dedication to making sure exploration below these contracts proceeds in accordance with the very best requirements of security, environmental stewardship, native content material growth, and clear income administration.
“Our pure assets should ship sturdy worth for the Liberian folks,” the President stated. “These agreements, when correctly managed, won’t solely strengthen Liberia’s financial system but additionally create jobs, construct abilities, and open alternatives that can profit generations to return.”
Officers say the signing of the PSCs represents one of the vital overseas investments in Liberia’s oil and gasoline sector in additional than a decade. TotalEnergies’ entry indicators renewed worldwide confidence within the nation’s hydrocarbon potential, bringing unmatched technical experience, monetary capability, and industry-leading requirements in security, setting, and social accountability.
About LPRA
The Liberia Petroleum Regulatory Authority is the impartial regulator of Liberia’s upstream petroleum sector. It oversees licensing, compliance, and governance to make sure protected, clear, and environmentally accountable operations that ship sustainable worth for Liberians and worldwide companions.
This isn’t TotalEnergies’ first operation in Liberia. In 2020, the corporate offered its advertising and marketing and companies companies in Liberia and Sierra Leone to Conex Oil & Fuel Holdings Ltd., a regional participant in petroleum product import, distribution, and provide chain administration in West Africa. The community included 63 service stations, basic commerce gas gross sales, and petroleum merchandise import and storage operations.
Jean-Pierre Sbraire, Complete’s Chief Monetary Officer, stated on the time that the gross sales contributed to the corporate’s ongoing divestment program and demonstrated its skill to repeatedly high-grade its portfolio.
Historical past of Oil Exploration in Liberia
Early Exploration (Nineteen Sixties–Nineteen Eighties)
Liberia’s offshore oil potential has been identified because the Nineteen Sixties, although the nation lacked the infrastructure and technical capability to develop it. The Liberian authorities, searching for to diversify its financial system past rubber and iron ore, granted exploration licenses to overseas oil corporations. Early seismic surveys and exploratory drilling revealed some hydrocarbon potential, however political instability and civil unrest slowed significant growth.
In the course of the Nineteen Eighties, corporations together with Chevron, Anadarko, and Tenneco explored offshore blocks. These efforts primarily concerned seismic research and shallow drilling. Civil battle, notably the First and Second Liberian Civil Wars (1989–2003), halted exploration and funding, leaving Liberia’s oil sector largely dormant.
Submit-Struggle Revitalization (2003–2010)
After the tip of the civil wars, the Liberian authorities prioritized attracting overseas funding in oil and gasoline. Liberia joined the Extractive Industries Transparency Initiative (EITI) and strengthened authorized frameworks for petroleum exploration. Throughout this era, Complete (then Complete S.A.) and different corporations carried out geological surveys and started discussions for future offshore growth.
Offshore Licensing Rounds (2010–2020)
Liberia launched its first aggressive offshore licensing rounds within the 2010s, providing deepwater blocks within the Atlantic margin. Corporations equivalent to Complete, Anadarko (later acquired by Occidental), and Woodside acquired exploration rights. Early exploration centered on deepwater seismic research to determine high-potential oil and gasoline basins.
Restricted Business Manufacturing (2020s)
Whereas Liberia has but to ascertain large-scale business oil manufacturing, offers just like the latest Manufacturing Sharing Contract with TotalEnergies sign renewed worldwide curiosity. Liberia has additionally centered on constructing native capability, environmental safeguards, and regulatory frameworks to make sure exploration advantages the nation’s financial system.
What’s subsequent?
The settlement will now be forwarded to the Liberian Legislature for ratification after which to the President for signature to take authorized impact. Though lawmakers are at the moment on break, the Unity Social gathering Alliance holds a majority in each the Home of Representatives and Senate, making its approval extremely doubtless when the Legislature reconvenes.
