MONROVIA – In a major step toward revitalizing Liberia’s energy and investment landscape, President Joseph N. Boakai has submitted eight Production Sharing Contracts (PSCs) to the Legislature for ratification — marking the country’s first petroleum exploration agreements in more than a decade.
The landmark deals, which demonstrate renewed international confidence in Liberia’s hydrocarbon potential, were signed between the Government of Liberia and two globally recognized oil companies — TotalEnergies EP Liberia LLC and Oranto Petroleum Liberia Limited.
Under the agreements, TotalEnergies will operate offshore blocks LB-06, LB-11, LB-17, and LB-29, while Oranto Petroleum will manage blocks LB-15, LB-16, LB-22, and LB-24.
In his communication to the House of Representatives, President Boakai described the PSCs as a cornerstone of his administration’s ARREST Agenda for Inclusive Development (AAID), which prioritizes economic growth, job creation, and expanded social services nationwide.
“The execution of these contracts not only represents a historic moment for our petroleum sector but also showcases our commitment to fostering an environment conducive to investment,” the President stated.
Strong Financial and Development Commitments
According to the agreement terms, the companies will make significant financial contributions to strengthen Liberia’s energy and regulatory institutions. Each year, $500,000 will go to the Energy Development Fund, and another $500,000 in administrative fees will be paid to the Liberia Petroleum Regulatory Authority (LPRA).
Signature Bonuses and Milestone Payments
- TotalEnergies EP Liberia LLC will pay a $3 million signature bonus, of which $400,000 will go to the LPRA and $2.6 million to the Consolidated Fund.
Additional milestone payments of $1.25 million each will be made upon the acquisition of new seismic data and the approval of the first exploration well. - Oranto Petroleum Liberia Limited will pay a $1.25 million signature bonus, including $400,000 to the LPRA and $850,000 to the Consolidated Fund, within 120 days of the contract’s effective date.
Similar milestone payments of $1.25 million each are also included for seismic data acquisition and first exploration well approval.
President Boakai emphasized that these agreements are not only financially beneficial but also strategically important for transforming Liberia’s economy.
“This strategic initiative is poised to catalyze Liberia’s economic transformation and its energy sector,” he said, urging the Legislature to act swiftly on ratification.
“Timely legislative action will ensure that these agreements, aligned with our national development agenda, begin delivering results for the Liberian people.”
A Path Toward Sustainable Growth
Analysts say the successful implementation of the PSCs could unlock thousands of new jobs, spur infrastructure development, and improve public services — particularly in education, health, and energy. The move is also seen as a critical step in positioning Liberia as an emerging player in the global petroleum and energy markets.
Following the President’s submission, the House of Representatives forwarded the contracts to the Committees on Hydrocarbons, Investment and Concessions, Contracts and Monopolies, and Judiciary for review and recommendations.
As Liberia stands on the threshold of renewed oil exploration, the ratification of these contracts could mark a defining moment in the nation’s economic recovery and energy independence — ushering in a new era of opportunity and growth for its citizens.
