The NEWS (Monrovia)
Sheriff Adams
10 May 2004
Monrovia — More than 50 years after the first attempt to search for oil came to an abrupt halt, Liberia has again embarked on similar initiatives leading to the exploration of crude oil in the country's deep water offshore.
Information about the exploration of crude oil was revealed over the weekend at a news conference by the President and Chief Executive Officer of the National Oil Company of Liberia (NOCAL), Cllr. F. Musa Dean.
He narrated that the latest search for oil in the country commenced in August 2000, when NOCAL contracted the services of TGS-NOPEC, an American geophysical company based in Houston, Texas.
According to him the search includes what he called "2-D seismic survey", which covered a large portion of Liberia's southern shelf and slope offshore.
Cllr. Dean said TGS-NOPEC acquired approximately 9,500 kilometers of seismic data from the entire offshore area, including the Deep Water Area of Liberia.
The NOCAL boss said the cost of the survey was put at US$6.4 million and data acquired can only be released to Liberia when the cost is underwritten.
As a result, he said the National Oil Company has an understanding indebtedness of US$6.4 million.
However, he added that TGS-NOPEC has agreed to be reimbursed using proceeds from the sale of the data.
In this regard, Cllr. Dean said a marketing package, comprising the interpretation of the seismic data, the New Petroleum Law of Liberia, which provides a favorable and conducive investment climate, has been completed and presented to the International Oil Industry at Liberia's Offshore Oil Exploration Licensing conference held in London and Houston in March and April 2004 respectively.
Cllr. Dean disclosed that Liberia's Deep Water Offshore Licensing Round is the first international competitive bidding arranged by the NOCAL.
He explained that between March and October, 2004, oil companies interested in acquiring blocks in Liberia's Offshore Area, which comprise 17 blocks, will be required to buy a portion of the 2-D data, analyze it, and submit a bid package to the National Oil Company of Liberia.
In this direction, Cllr. Dean told journalists that negotiations have been concluded with two companies, REPSOL, a company based in Spain and Oranto, a Nigerian registered company, for the granting of exploration rights to conduct 3-D exploration in Liberia's Offshore blocks 17 and 12 respectively.
"While we remain hopeful, no oil has been found and we caution our people to guide against wishful thinking the search or exploration for crude oil is very tedious, time consuming and an expensive undertaking," Cllr. Dean pointed.
In the petroleum industry, the NOCAL boss indicated that the average well drill has a one in ten chance of striking hydrocarbons, adding that a well-drilled in a frontier area like Liberia, stands one in 40 chance of discovery.
" With the situation we have described, no Liberian should expect any up front money. The idea of anyone offering money to the National Oil Company of Liberia for blocks is a wishful thinking the risk are too costly and expensive for any investor, particularly in a frontier area; and no one will pay any up front money to anyone," Cllr. Dean warned.
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