The President and Chief Executive Officer-designate of the National Oil Company of Liberia (NOCAL), Fabian Michael Lai, has revealed that Liberia stands to gain a 25 percent equity benefit if the company decides to sell the oil blocks to another company in the recent deal involving the Government of Liberia and Oranto Petroleum. Lai made the disclosure during his confirmation hearing before the Senate Committee on Hydrocarbon, Energy, and Environment, held at the Liberian Senate Chambers. According to Lai, the government’s objective in securing a 25 percent stake in the Oranto deal is to prevent the recurrence of past mistakes, in which oil blocks awarded to companies were later resold to foreign entities without yielding any tangible benefit to Liberia.
He said the administration, through NOCAL, has instituted a series of mechanisms designed to protect Liberia’s long-term economic interest and ensure transparency in the management of its petroleum resources. “We made mistakes, and for those mistakes we learned the hard way mistakes we don’t want to repeat,” Lai told senators during the hearing. He emphasized that Liberia’s new approach to oil sector governance is rooted in accountability, inclusion, and sustainability. The NOCAL President-designate was responding to lawmakers’ concerns over Oranto’s past operations in Liberia, particularly allegations that the company owed staff after exiting the country following its previous oil block transactions.
Lai assured the Senate that NOCAL intends to address those lingering concerns, acknowledging that such issues had been brought to the institution’s attention. Oranto Petroleum, owned by Nigerian businessman Prince Arthur Eze, was first awarded three offshore oil blocks LB-11, LB-12, and LB-14 in 2007 for a reported US$200,000. The company later sold those blocks to Chevron in 2010, reportedly earning an estimated US$200 million from the deal, while Liberia received minimal financial benefit. Under the new arrangement currently before the National Legislature for ratification, Oranto has partnered with TotalEnergies to jointly operate eight oil blocks off Liberia’s coast.
The deal, however, has sparked significant debate within the Legislature, with lawmakers including former Speaker J. Fonati Koffa and Representative Musa Hassan Bility calling for its rejection. They argue that the agreement appears to heavily favor foreign interests and could perpetuate the cycle of exploitation that has historically denied Liberia equitable returns from its natural resources. Appearing before the Senate Committee, Lai defended the deal, stressing that this time Liberia’s participation is structured to secure direct benefits for the country and its citizens. He said the 25 percent equity share ensures that Liberia retains ownership value in the venture and guarantees revenue from future production.
“Though we want more companies to invest, the country’s interest and that of its citizens remain paramount,” Lai declared. “The Oranto–TotalEnergies agreement currently before the Legislature is a reflection of this commitment.” He further highlighted that the new agreement prioritizes environmental protection and community development, adding that the benefits will extend beyond the capital, Monrovia. “There are different ways our citizens will benefit through developmental impacts. It’s no longer going to be a Montserrado-only training program. Scholarship opportunities will cover all 15 counties,” Lai assured. In his statement titled “A Sovereign Imperative,” Lai outlined an ambitious blueprint to transform NOCAL into a modern, transparent, and vertically integrated oil and gas company.
His vision, he said, is for NOCAL to evolve from a passive custodian of oil blocks into a dynamic, development-driven institution capable of managing the entire petroleum value chain. Lai’s plan rests on five guiding principles data-driven sovereignty, increased government ownership, inclusive partnerships, integrated value capture, and capacity building for Liberians to participate effectively in the oil and gas sector. He proposed a comprehensive reform agenda focusing on enhancing Liberia’s geological data library, promoting international investment, prioritizing exploration, expanding downstream infrastructure, and creating a national logistics hub to support both the petroleum and mining industries.
The proposed reforms also include establishing a minimum 25 percent government equity stake in all petroleum sharing contracts (PSCs) to ensure that Liberia consistently receives its fair share of profits from its resources. Lai laid out a detailed three-to-five-year roadmap, pledging to modernize the national data library, strengthen government-to-government energy partnerships, and build large-scale downstream storage facilities to stabilize fuel supply and generate jobs. He also committed to launching aggressive international marketing campaigns to attract reputable investors while ensuring strong local participation. “Honorable Senators, I do not just want to come here and bore you with words. I want you to hold me accountable,” he said.
“Our goal is to deliver tangible benefits that the Liberian people rightfully deserve.” If confirmed, Lai said he will lead NOCAL with transparency and accountability, keeping the Senate fully informed of progress and challenges through regular briefings. He expressed optimism that Liberia’s petroleum future can be built on “data, inclusion, and strategic partnerships” a model designed to ensure that the country’s natural resources contribute directly to national prosperity.
As the debate continues over the Oranto–TotalEnergies deal, Liberians await the Legislature’s decision, which could shape the next chapter of the country’s oil and gas industry. For Lai, the message is clear: Liberia must never again give away its resources without securing a fair return for its people.
Author: Zac T. Sherman
