Liberia Opens Up to International Oil Investors Amid Concerns Over Transparency

In a bold move to unlock its vast oil potential, Liberia has extended an invitation to international oil and gas investors, assuring them that the country is "ready for business." Rustonlyn Suacoco Dennis, President and CEO of the National Oil Company of Liberia (NOCAL), made the announcement at the prestigious Africa Oil Week (AOW) 2024, emphasizing that Liberia’s offshore basins hold immense potential, similar to other regions with significant oil discoveries.

According to Dennis, NOCAL has made significant progress in refining Liberia’s subsurface data, completing the first phase of reprocessing 12,097 kilometers of 2D seismic data. The second phase, involving an additional 12,675 kilometers, is currently underway, bringing the total seismic coverage to over 24,700 kilometers. This high-quality data is critical for exploration and production companies to assess opportunities in Liberia’s largely underexplored but proven petroleum system.

Dennis introduced two major investment opportunities in Liberia’s oil sector: direct negotiations with the Liberia Petroleum Regulatory Authority (LPRA) for acquiring exploration blocks and a new approach termed "Executive Allocation to NOCAL." The latter allows potential partners to collaborate directly with the state-owned company, offering several incentives to investing partners.

However, concerns have been raised over the visit of Nigerian businessman Prince Arthur Eze, a known name in the Liberian oil industry, who was seen in pictures with key government officials, including President Joseph Boakai. Eze’s past dealings with Liberia’s oil sector have been marred by accusations of exploitation, and his interest in acquiring oil blocks, including Blocks 15, 16, 22, and 24, has sparked debate over the integrity of Liberia’s oil bidding process.

The Liberia License Round, 2020, comprises nine blocks in the highly prospective Harper Basin, with seven Liberian companies pre-qualified to participate. However, the involvement of Eze, who has a history of controversy in Liberia’s oil sector, has raised questions about whether his involvement will bring benefits to the country or risk repeating past mistakes.

As Liberia opens up to international oil investors, the country must ensure transparency and accountability in its oil bidding process to avoid repeating past mistakes and to ensure that the benefits of its oil resources are shared equitably among its citizens.

Related Stories:

• Liberia’s Oil Sector: A New Era of Transparency and Accountability?
• The Liberia License Round, 2020: A Guide to the Country’s Oil Blocks
• Prince Arthur Eze: A Controversial Figure in Liberia’s Oil Industry

Stay tuned for more updates on this developing story.