Liberia: House Passes Ivanhoe/Hpx, TotalEnergies and 'Controversial' Oranto Oil Deals - but Bility, Others Reject

Capitol Hill — The Liberian House of Representatives has approved a series of high-profile oil and mining agreements, including deals with Ivanhoe/HPX, TotalEnergies, and the controversial Oranto Oil, sparking criticism from some lawmakers who questioned the rationale and transparency behind the combined vote.

Representative Musa Hassan Bility of Nimba County, a vocal critic, said he opposed the Oranto Oil component, despite supporting the TotalEnergies Bill. "I would have supported the Total Energy Bill if it had been brought separately," Bility explained. "However, with no justification given and without logic, it was brought as an omnibus bill, bundled with the Oranto deal, which constrained me to vote against the combined instrument."

Bility warned that combining less popular bills with widely supported legislation is a common strategy used to secure approval of controversial measures. "One can safely assume that with the pushback against the Oranto deal from so many, the proponents knew that it had a high possibility of being rejected if submitted as a stand-alone instrument," he said.

While the omnibus package passed, Bility maintained his opposition to the Oranto deal, citing concerns over the company's approach. "It has no clear plan for exploration, and Oranto's business model is simply to acquire our asset and flip it for profit," he added.

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Despite weeks of objections from influential lawmakers, 27 members of the House voted for the passage with four against and one abstention to approve PSCs signed with TotalEnergies EP Liberia LLC and Oranto Petroleum Liberia Limited. The approval followed a report from the Joint Committee on Hydrocarbon, Concession and Judiciary that recommended periodic five-year reviews but otherwise endorsed the deals.

But the legislative outcome only scratches the surface of a deeper political struggle that has been simmering for months.

The controversy erupted in late October when Cllr. J. Fonati Koffa, the immediate former Speaker and Grand Kru County District #2, who publicly dissected the Oranto contract in a blistering legal breakdown.

His posts, shared widely on social media and reported also by this paper, claimed that key provisions violated Liberia's 2019 Petroleum Law, particularly its requirement for a combined 15% Liberian equity stake through citizens and NOCAL.

Koffa's critique did more than question the contract--it challenged the credibility of the administration's negotiation process.

His intervention energized other skeptics, including Gbarpolu County Senator Amara Konneh, who had earlier issued his own sweeping statement questioning Oranto's financial capacity and corporate track record.

But on the heel of all these controversies, the House relentlessly voted to pass on the instrument and subsequently forwarded it to the Liberian Senate for possible concurrence when deemed necessary.

Atlas/Oranto Petroleum Liberia Limited, a subsidiary of the Nigerian-linked Oranto Petroleum group, signed PSCs for four offshore blocks -- LB-15, LB-16, LB-22, and LB-24 -- which include signature bonuses and commitments to undertake exploration activities.

Background & Controversy

Oranto previously held Liberia oil blocks but transferred them to Chevron without drilling, raising concerns about the company's capacity, tax compliance, and overall track record. Critics have also questioned the transparency and terms of the new agreements.

The deal has sparked public debate, with growing calls for greater transparency and assurances that the agreements will deliver meaningful benefits to Liberia.

TotalEnergies Oil Deal

TotalEnergies, a major global energy company headquartered in France, signed four Production Sharing Contracts (PSCs) for offshore exploration blocks LB-6, LB-11, LB-17, and LB-29 in the Liberian Basin. These contracts were awarded under the 2024 Direct Negotiation Licensing Round.

The agreements aim to revive exploration activities in Liberia's deepwater basins through seismic surveys and the potential drilling of wells. TotalEnergies brings significant technical expertise and investment strength, marking the first major international upstream engagement in Liberia in more than a decade.

The deal is viewed as a major step toward revitalizing Liberia's dormant oil sector, attracting foreign investment, and strengthening local content participation and environmental safeguards.

It can be recalled that President Boakai submitted the agreements on October 21, requesting legislative concurrence on eight new offshore PSCs with the two foreign companies.

Upon submission, the document was sent to the relevant committee for scrutiny, and hence, following weeks of review, the committee presented its report to the Plenary of the House.

The Ivanhoe deal

Like the Oranto deal, the passage of the Ivanhoe agreement was not void of drama. Despite conflicting testimonies by ministries with relevant authorities, the controversial Concession and Access Agreement (CAA) between the Government of Liberia, Société des Mines de Fer de Guinée (SMFG), and Ivanhoe Liberia Limited was ratified by the House of Representatives.

Prior to the passage, top United States Congressman John Moolenaar (R-MI), Chairman of the U.S. House Select Committee on the Chinese Communist Party (CCP), raised alarms over the multibillion-dollar rail corridor, cautioning that U.S. government support for the project could "unwittingly strengthen Beijing's global mineral chokehold."

In a letter sent Tuesday to U.S. Secretary of State Marco Rubio, Moolenaar questioned the State Department's favorable posture toward Ivanhoe Atlantic.

Moolenaar argued that Ivanhoe's ownership structure includes major stakes held by Chinese state-linked companies, posing what he described as "serious geostrategic risks" at a time when Washington is attempting to reduce dependence on Beijing for global minerals.

Not only the US lawmaker expressed dissatisfaction over the deal. Back home in Liberia, Senator Nya D. Twayen Jr. has openly rejected current form of the deal. In a statement, he said his office completed a comprehensive review of the Ivanhoe concession--alongside the ORANTO Petroleum agreement and a pending ArcelorMittal arrangement--and found the Ivanhoe deal scored just 77% compliance, far below his 85% threshold for approval.

He cited multiple concerns, including paving the Nimba-Guinea haulage corridor. Twayen insists the route must be fully paved, not left as dusty laterite. He warned that Liberia should not be held liable to repay the company's US$37 million advanced payment.

He demanded a clear, jointly agreed governance framework involving Liberia, Ivanhoe, and ArcelorMittal, and a stricter oversight of the community Development Fund (CDF); insisting the fund remain under direct government and community control.

Despite these warnings, the House of Representatives, sitting on the 18th day of its second session of the third quarter on Thursday, December 11, members voted to pass on the agreement - ignoring all of the different stifles during the hearing process of the concession.

The House's decision followed the submission of a comprehensive report by the Joint Committee of the House on Concession and Investment.

The CAA, dated July 5, 2025, sets the framework for significant infrastructure development and regional cooperation centered on iron ore transportation.

The Joint Committee conducted a thorough review of the agreement, consulting with members of the Inter-Ministerial Concessions Committee (IMCC) and analyzing its potential economic and infrastructural impacts on Liberia.

What's in the agreement?

The agreement grants SMFG and Ivanhoe a 25-year concession to transport iron ore from Guinea through Liberia, utilizing existing railway infrastructure and expanding it as needed.

The iron ore will be exported via Liberian rail to the Port of Buchanan with the hope of enhancing increased shipping volumes, including upgrades to the Buchanan Commercial Quay.

Excerpt of the agreement: "The financial implications are substantial, with an estimated investment of nearly US$1 billion in infrastructure. Initial payments include a US$1 million fee due shortly after signing, followed by escalating payments over the early years of operation, as well as ongoing royalties based on iron ore tonnage shipped."

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