Monrovia — In early October, Rustonlyn Suacoco Dennis, President and CEO of the National Oil Company of Liberia (NOCAL), extended an invitation to international oil and gas investors during her address at the prestigious Africa Oil Week (AOW) 2024. Speaking with confidence, Dennis emphasized that Liberia is "ready for business," assuring the global community that the country is eager to unlock its vast oil potential.
"We believe that Liberia has some of the best oil in Africa, trapped within our basin. We want to extract it, and we are open to investors," Dennis declared, projecting optimism about the nation's geological prospects. Liberia's offshore basins, according to her, hold immense potential, sharing similarities with other regions where significant oil discoveries have already been made.
At the conference, Dennis announced that NOCAL, in partnership with global data firms TGS and Core Lab, has made significant progress in refining Liberia's subsurface data. The first phase of reprocessing 12,097 kilometers of 2D seismic data has been completed, greatly improving the country's ability to present viable exploration blocks to potential investors. The second phase, involving the reprocessing of an additional 12,675 kilometers, is currently underway, bringing the total seismic coverage to over 24,700 kilometers. "This high-quality 2D seismic data is critical for exploration and production companies to assess opportunities in what is still a largely underexplored but proven petroleum system," Dennis noted.
Dennis further introduced two major investment opportunities in Liberia's oil sector: direct negotiations with the Liberia Petroleum Regulatory Authority (LPRA) for acquiring exploration blocks and a new approach termed "Executive Allocation to NOCAL." The latter allows potential partners to collaborate directly with the state-owned company. NOCAL, which retains 100% interest in the blocks, can divest part of its interest to interested parties, offering several incentives to investing partners.
Concerns over Nigerian Businessman's Visit
Despite the official bidding process currently in progress, Nigerian businessman Prince Arthur Eze, a known name in the Liberian oil industry was in town over the weekend and was seen in pictures with key officials of government.
According to sources, the former head of NOCAL, Dr. Christopher Neyor, and presidential aide Jacob Kabakollie, facilitated meetings between Eze and high-ranking Liberian officials, including President Joseph Boakai.
Reliable sources reported that Eze was flown into Monrovia to discuss potential deals directly with President Boakai. However, he reportedly left disappointed as the Liberian President, reportedly insisted on allowing the bid to go on under undue influence.
"Despite the ongoing bid, an interested party was granted an audience with the President. This raises concerns about conflict of interest and potential undue influence on the process," the source disclosed. The arrangement of such a meeting, especially during a sensitive bidding process, is being seen as highly controversial.
Kabakollie, the nephew of President Boakai, served briefly as the Officer-in-Charge of NOCAL following the President's swearing-in.
Prince Arthur Eze is no stranger to controversy in Liberia. His past dealings with Liberia's oil sector have been marred by accusations of exploitation during the country's transition from civil war to peace. In 2010, Eze sold three offshore oil blocks to Chevron Corporation for $150 million, netting a personal profit of $200 million. According to Global Witness, the London-based watchdog, these oil blocks were acquired with minimal fees through what were described as bribes to legislative officials.
With the renewed call from NOCAL's CEO, Eze has again expressed interest in acquiring oil blocks, including Blocks 15, 16, 22, and 24, which Exon Mobil applied for prequalication, according to the Liberia Petroleum Regulatory Authority said.
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The Liberia License Round, 2020 is comprised of nine blocks in the highly prospective Harper Basin. The Liberia Petroleum Regulatory Authority (LPRA) has pre-qualified Seven (7) Liberian Companies.
Nine (9) companies expressed interest to be pre-qualified but the evaluation panel denied two companies for lack of legal and financial competence. The seven companies include: DEMUS Exploration and Production, Jungle Energy Power INC, New Millennium Oil and Gas, Africa Oil and Gas Inc, Green Petroleum (Liberia) Limited, MAC-Africa Petroleum Inc and the TSC Global Inc.
The high-profile visit has sparked debate over the integrity of Liberia's oil bidding process, with questions surrounding whether Eze's involvement will bring the benefits the country desperately seeks or whether it risks repeating past mistakes.
