The NEWS (Monrovia)
4 July 2008
Monrovia — The Liberian government says the probability of discovering oil off its shores is a 50-70 chance, adding that there are good prospects ahead.
Lands, Mines and Energy Minister Dr. Eugene Shannon said based on geological information that the Gulf of Guinea is where some West African nations have discovered oil, it is probable that Liberia could discover oil as well.
Minister Shannon spoke with journalists Tuesday at the second Liberia offshore Petroleum Bid round which was launched on December 1, 2007.
The bid process took place at the Episcopal Church Plaza on Ashmun Street. Three companies biding for blocks include H.K. Tong Tai International, Mittal Investment SARL and Anardaco, an American firm said to have been involved in the discovery of oil in Ghana. The three companies are said to have made a non-refundable payment of US$25,000 each to begin the process.
According to him, out of 18 blocks, five were previously bided for, and the last three would be given following a biding process, evaluation and due diligence processes.
He said a technical committee will vet the bid agreements, evaluate the companies before going for due diligence following which a shot list would be sent to management which will send its report to the board for onward transmission to the President who will present the document to the national legislature.
The President of NICOL, Dr. Fodee Kromah said a private professional company with experience in the area will be hired to carry out the due diligence in order to have financial look of the companies.
He explained that following the biding process, the next stage is (the three day), an exploration process that gives the company the opportunity to drill for oil.
"There's no instrument that tells you there is oil here until you drill, but you have to keep trying until a discovery is made," he said.
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