Business
Liberia signs oil exploration agreement with majors COPL, ExxonMobil
The National Oil Company of Liberia (NOCAL) has signed an exploration agreement with the Canadian Overseas Petroleum Ltd. (COPL) and ExxonMobil for exploration of Liberia’s offshore Block 13 (LB-13).
Landing the world’s largest private sector oil company will add heft to Liberia’s nascent oil industry. The deal comes as the West African state is seeking to overhaul its petroleum policy and bolster transparency.
“The president feels that this deal is in the best interests of the country and she is scheduled to sign it later this afternoon,” the spokeswoman for Liberia’s President Ellen Johnson-Sirleaf said.
The accord for offshore Block 13 will need to be ratified by parliament, something which is likely in the coming weeks.
Interest in West Africa’s offshore energy sector has surged after Ghana struck oil in 2007. Companies have since announced a string of smaller finds in regional neighbors including Liberia and Sierra Leone.
(More: Liberia strikes oil – Potentially huge discovery)
Chevron, Anadarko, and African Petroleum also have rights to offshore blocks in Liberia. None have identified commercial reserves, though African Petroleum said last year it struck a “potentially large” reservoir on its Block 9 and was pursuing further exploration.
