LPRA Commends Liberian Legislature On Offshore Contract Ratification - FrontPageAfrica

Monrovia –The Liberia Petroleum Regulatory Authority has described the ratification of several offshore petroleum contracts by the Liberian Legislature as a significant national breakthrough that positions the country to resume offshore oil and gas exploration after more than ten years of inactivity.

The ratified contracts cover offshore blocks LB-06, LB-11, LB-17, and LB-29, which were awarded to TotalEnergies EP Liberia, as well as blocks LB-15, LB-16, LB-22, and LB-24, which were awarded to Oranto Petroleum Liberia Limited.

The LPRA said the Legislature’s action provides the legal foundation and certainty required for the companies to begin implementing their exploration work programs and demonstrates Liberia’s readiness to reengage credible international and regional energy operators.

According to the authority, the approval of the contracts reflects the success of the government’s renewed petroleum sector reform agenda. The LPRA noted that the agreements are the direct result of President Joseph Nyuma Boakai’s 2024 outreach to energy companies, during which he pledged that Liberia would offer an investment environment anchored in ethical conduct, respect for the rule of law, adherence to international best practices, and strict enforcement of contractual obligations.

The authority said the ratification affirms the administration’s commitment to transparency and accountability in the governance of the country’s natural resources.

The LPRA disclosed that the contracts have already secured substantial financial benefits for Liberia even before any oil or gas discovery is made. These benefits include 27 million United States dollars in signature bonuses, more than fourteen point six million United States dollars in surface rental payments, and additional annual payments dedicated to training, social development initiatives, customs obligations, and hydrocarbon sector development. The authority emphasized that these revenues will contribute immediate fiscal value to the country while exploration activities progress.

Beyond the immediate financial inflows, the LPRA stressed that the broader importance of the contracts lies in their potential to unlock Liberia’s offshore petroleum potential. The authority noted that successful exploration and possible discoveries could significantly alter Liberia’s energy outlook, strengthen national revenue generation, create employment opportunities, and support long term economic development.

The LPRA expressed confidence in the technical expertise, financial strength, and operational capacity of both TotalEnergies and Oranto Petroleum to carry out their respective work commitments under the approved agreements. However, the authority made it clear that this confidence will be accompanied by firm and consistent regulatory oversight.

The authority assured the public that it will strictly enforce all contractual obligations, including work programs, timelines, and performance guarantees. It further stated that while it will provide the necessary regulatory support to facilitate petroleum operations, such support will remain fully within the bounds of the law and guided by the national interest.

The LPRA said its role is to ensure that exploration activities are conducted responsibly, transparently, and in compliance with all applicable regulations.

In recognizing the completion of the licensing, negotiation, and ratification process, the LPRA extended appreciation to key government institutions that contributed to the outcome.

These include the Ministry of Justice, the Ministry of Finance and Development Planning, the Ministry of Mines and Energy, the National Oil Company of Liberia, and the Special Presidential Committee on Oil and Gas. The authority noted that the coordinated efforts of these institutions were critical at every stage, from the initial licensing round through negotiations and final legislative approval.

The LPRA said it will continue engaging with government partners, industry stakeholders, and potential investors to attract additional operators to Liberia’s offshore basin. The authority stated that its goal is to lay a strong foundation for future discoveries and to ensure that any eventual petroleum development delivers lasting economic and social benefits to the Liberian people.