Debate over Liberia’s newly approved Oranto Petroleum Agreement has intensified as legal expert and political advocate Cllr. Kanio Bai Gbala hits back at recent criticisms issued by former Speaker of the House of Representatives, Cllr. J. Fonati Koffa. The former Speaker argued that the agreement offered too little benefit to Liberia, citing Ghana’s reported US$20 million signature bonus for deep-water petroleum blocks, which he claims funded part of that country’s Airport City development.
By contrast, he noted, the Oranto deal provides a US$1.2 million signature bonus, which he argued is “not even enough to buy a presidential limousine.” Koffa further contended that the agreement violates the 2016 Petroleum Law, particularly regarding signature bonus payments. “The law clearly states that all money paid in respect to petroleum activities except seismic data purchases shall be deposited into the Consolidated Fund,” he said.
“So their attempt to divide that money in Section 17 of the agreement is illegal. Where was the Justice Minister? Injunction loading.” He also raised concerns over the cost-recovery clause under Section 16.3, asserting that Oranto would be reimbursed for every cent spent on acquiring the block if the asset is eventually transferred or “flipped,” including signature bonuses, data costs, permit fees, and other expenses.
Koffa characterized this as a threat to the national interest. In response, Cllr. Kanio Bai Gbala Assistant Professor of Law at the Louis Arthur Grimes School of Law and Founder of the Centrism Movement accused Koffa of misrepresenting Liberia’s petroleum laws and undermining the nation’s credibility in the eyes of global investors. Gbala argued that the Petroleum Law provides flexibility to negotiate contract terms based on a range of factors, including geological risk and fiscal limitations.
He explained that the National Oil Company of Liberia (NOCAL) holds the national interest share on behalf of the Liberian people and that such ownership structures are standard in petroleum contracts worldwide. “To argue that Liberians are excluded because NOCAL manages their national share is both incorrect and misleading,” he said. On the contentious signature bonus, Gbala clarified that as long as the payment is properly recorded, transferred into the Consolidated Account at the Central Bank, and subjected to the national budget process, the agreement remains consistent with the law.
Gbala also dismissed the cost-recovery concerns as common practice in the global oil sector. “Exploration is high-risk, and internationally, investors recover costs only if oil is eventually discovered. This is not a loophole it is a commercially recognized standard,” he emphasized. Supporting Gbala’s position, some legal and governance experts believe that Koffa’s analysis could weaken investor confidence by portraying Liberia as unpredictable and politically unstable. “When senior lawmakers misinterpret established legal processes for political purposes, they not only confuse the public but potentially drive investors away,” one commentator noted.
Gbala urged national leaders to approach major resource discussions with accuracy and respect for established legal frameworks rather than political rivalry. “The patriotic duty of any lawmaker is to strengthen institutional trust, not undermine it for short-term political gain,” he said. As Liberia continues seeking large-scale investments to stimulate economic growth, the Oranto deal remains a focal point of national discourse one reflecting broader tensions between political scrutiny and the country’s effort to attract responsible investors.
Author: Zac T. Sherman
