Liberia is moving to keep more oil industry jobs and contracts at home after earlier drilling operations relied heavily on services from neighboring countries. The National Oil Company of Liberia (NOCAL) has signed an agreement with Nigeria's Lagos Deep Offshore Logistics Base (LADOL) to develop a shorebase in Buchanan that would allow more of that work to be handled locally.
The Joint Development Agreement, signed in London on October 3, sets out a partnership to develop and operate the proposed facility in Grand Bassa County. Before construction, the partners will undertake a feasibility study to assess the site, infrastructure requirements and commercial viability.
A shorebase is an onshore facility that supports offshore petroleum operations. It provides a place to organize supplies, equipment and services needed by drilling teams working at sea. For Liberia, the proposed investment is intended to capture business opportunities that previously went to service providers elsewhere in West Africa.
According to NOCAL, essential services during Liberia's last drilling program -- including waste disposal, logistics, supply chain management and specialized technical support -- were sourced from countries such as Côte d'Ivoire, Ghana and Senegal. As a result, a substantial share of the associated economic benefits and employment opportunities was realized outside Liberia.
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"We are determined to correct that narrative as we prepare for our next set of drilling programs," said Fabian M. Lai, NOCAL's President and Chief Executive Officer.
"This partnership with LADOL is about more than just building a logistic hub for Liberia. It is about anchoring the value chain of our petroleum sector firmly in Liberian soil. Our goal is to ensure that the jobs, the contracts, the training, and the ancillary services that support our petroleum operations are performed by Liberian companies and create opportunities for Liberian citizens right here in Liberia."
NOCAL said the project is being pursued in anticipation of increased drilling activity arising from petroleum agreements already signed by the government, as well as additional concessions expected in the future.
That makes the proposed shorebase an effort to prepare for the business generated by exploration itself. Drilling campaigns require supplies, transport, technical services and waste management, creating opportunities that Liberia hopes to retain within its economy.
Under the agreement, LADOL will serve as NOCAL's lead technical partner, working with the corporation to fund and conduct the feasibility study, coordinate engineering design, and construct and operate the facility.
The study is expected to begin within 45 days of the announcement and last six months. It will assess the land required, waterfront conditions and marine access, utility needs, and the project's commercial and operational viability.
The assessment will also include geotechnical and topographical surveys to examine ground conditions and the site's physical features, along with scoping for an Environmental and Social Impact Assessment.
The release did not disclose the project's estimated cost, a construction timetable or the number of jobs expected. Those details will be important in determining the scale of the investment and how much work Liberian businesses and workers could secure.
LADOL operates a logistics and industrial facility in Lagos, Nigeria, supporting offshore operations. NOCAL said the partnership would draw on that experience to develop the Buchanan facility.
"This agreement is a testament to our confidence in Liberia's oil and gas potential and our commitment to fostering local content development across West Africa," said Sir Oladipo Ladi Jadesimi, LADOL's Executive Chairman.
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"We are not just investors; we are partners in building a sustainable future for Liberia's oil and gas industry. By establishing this shorebase, we can help ensure that Liberian businesses and workers are the primary beneficiaries of the country's natural resources."
The agreement provides for NOCAL and LADOL to serve as the facility's exclusive developer, operator and maintenance provider. It also establishes a Joint Steering Committee to oversee progress and commits the parties to completing definitive project agreements.
For Buchanan, the proposal offers the prospect of additional business activity tied to offshore exploration. Its wider significance will depend on whether the facility proceeds and whether Liberian firms and workers gain the skills, contracts and access needed to participate.
The first step is the feasibility study, which will test whether the proposed base can meet the needs of petroleum operators while advancing NOCAL's stated goal of keeping more of the industry's supporting business in Liberia.
