By: Archie Boan
The Director General of the Liberia Petroleum Regulatory Authority (LPRA), Marilyn Logan, on Thursday delivered a strong defense of the TotalEnergies and Oranto Petroleum agreements currently before the Liberian Senate for ratification, warning that Liberia risks missing critical investment opportunities if the deals stall.
Appearing before the Senate’s Committee on Hydrocarbon, Energy, and Environment Logan outlined the long decline of Liberia’s oil sector since major companies such as ExxonMobil, Chevron, Anadarko and others abandoned exploration between 2015 and 2018 with no commercial discoveries.
She said when President Joseph Boakai took office, “Liberia did not have a single active operator in the oil and gas sector.”
Madam Logan explained that the 2024–2025 Direct Negotiations Licensing Round was authorized by the President and carried out within the petroleum law due to tough global market conditions, including falling oil prices, high exploration risks, and companies shifting spending away from new offshore frontiers.
Although labeled “Direct Negotiations,” she emphasized that the process was competitive, transparent, and guided by strict technical and financial due diligence.
More than ten international companies reviewed Liberia’s offshore data before negotiations, she said, with most concluding that Liberia’s geological prospects remained strong but required competitive and predictable fiscal terms to attract investment.
Madam Logan told senators that the government stands to benefit whether or not commercial oil is eventually discovered.
She listed guaranteed inflows across the eight offshore blocks:US$27 million in signature and milestone bonuses
US$14.6 million in surface rental fees during the exploration period,
US$20 million in management fees over ten years , US$1.6 million annually for training and capacity-building,US$1.4 million annual social contribution
,US$300,000 in customs payments
,US$4 million in hydrocarbon development funds
She added that strong local content rules including mandatory preference for Liberian workers, Liberian-owned companies, and technology transfer are designed to ensure opportunities flow into the Liberian economy long before production begins.
If commercial production is eventually achieved, Logan said Liberia would also earn: Royalties on every barrel produced
Approximately US$360 million in production bonuses, Profit-oil revenue, Legally enforced performance guarantees
She noted that the agreements contain clear termination triggers, operator removal for payment failures, mandatory drilling obligations, and strong reporting requirements.
Despite LPRA’s defense, the committee made it clear that ratification would not be automatic.
Committee Chair Senator Edwin M. Snowe stressed that the Senate must ensure that:
Local content is real, not symbolic ,Royalty and revenue guarantees are airtight, Liberians genuinely benefit from services, supplies, and employment
He warned that the committee holds the authority to withhold confidence if the agreements fall short.
Officials from the LPRA, Liberia Revenue Authority, Ministry of Finance and Development Planning, National Oil Company of Liberia (NOCAL), and Ministry of Justice also appeared as technical witnesses.
The Committee later closed the session, noting that it may reopen the hearing “if the need arises.”
The Senate’s final decision on the fate of the agreements now hangs on the committee’s report, which is expected to determine whether Liberia restarts offshore petroleum activity for the first time in nearly a decade or goes back to the drawing board once again.
