The Liberian Senate’s Joint Committee on Hydrocarbon and Concession on Thursday convened has begun conducting public hearings to review the proposed petroleum agreements involving Total and Oranto Petroleum. This forms part of the Legislature’s scrutiny of President Joseph Nyuma Boakai’s submission, seeking ratification of the two major oil block concessions. The hearing brought together key institutions within the energy and financial sectors, including the Liberia Petroleum Regulatory Authority (LPRA), Ministry of Finance and Development Planning (MFDP), National Oil Company of Liberia (NOCAL), Liberia Revenue Authority (LRA), Ministry of Justice (MoJ) and the National Investment Commission (NIC).
Lawmakers are demanding broad-based stakeholder input as they work to establish the viability, transparency and economic impact of the deal. Addressing the Joint Committee, LPRA Director General Marilyn T. Logan explained that the agreements under consideration stem from Liberia’s 2024 Direct Negotiation Licensing Round. She noted that early in 2024, President Boakai authorized LPRA’s plan to initiate the licensing round in accordance with Section 8 of the Liberia Exploration and Production (E&P) Law of 2014. The mandate, she said, empowers the Authority to attract qualified petroleum companies, lead negotiations, administer petroleum agreements and ensure compliance. Logan emphasized that while the process is categorized as “direct negotiations,” it remains competitive and transparent, resting on global industry standards.
She informed senators that on August 15, 2024, LPRA issued both local and international invitations to participate, reaching international oil companies, regional operators and Liberian-owned firms—all required to meet strict pre-qualification criteria. Companies that demonstrated strong technical and financial capability after a comprehensive due diligence screening were invited to negotiate directly with the Government of Liberia. She further highlighted that the two agreements before the Senate are the direct product of a “rigorous, transparent and legally compliant” negotiation process. Logan extended appreciation to President Boakai and his advisory team, as well as the Ministry of Justice, MFDP, Ministry of Mines and Energy and NOCAL for what she described as a “whole-of-government approach” that strengthened the integrity of the licensing exercise.
Providing context for the industry’s current realities, Logan outlined Liberia’s challenges in attracting investors. She reminded lawmakers that Liberia remains a non–oil-producing nation, despite previous exploration programs by major companies including Exxon, Chevron, Anadarko, ENI and Repsol between 2010 and 2017. Those earlier efforts generated useful geological data but resulted in no commercial discoveries, and by 2018 all exploration activities had ceased. She noted that global factors also contributed to the downturn. A 60 percent drop in world oil prices from over US$110 to below US$45 per barrel beginning in 2014 caused companies to significantly scale back on exploration and focus instead on established producing regions.
Frontier basins like Liberia saw investor interest plummet. Across Africa, she added, new licensing rounds launched by Sierra Leone, The Gambia, Ghana, Cameroon and Madagascar failed to produce significant results, while even larger markets such as Brazil experienced low participation. “The message from the industry was clear,” Logan said. “Exploration companies have become more cautious, more selective and more willing to take risks only if the fiscal terms are competitive enough to justify exploration in high-risk frontier basins.”
Senators indicated that the information gathered from the hearing will guide the Joint Committee on Hydrocarbon and Environment, along with the Committee on Concessions, in preparing recommendations for the Senate Plenary. Logan suggested that multiple hearings may be necessary as part of the ratification process. President Joseph Nyuma Boakai recently submitted the two proposed concessions involving Total and Oranto Petroleum for legislative approval. The Senate is now tasked with determining whether the agreements meet national economic goals, safeguard the country’s interest and position Liberia for future participation in the global petroleum industry.
Author: Zac T. Sherman
