President Joseph Nyuma Boakai has reignited Liberia’s long-stalled oil sector by submitting eight offshore production-sharing contracts to the National Legislature for ratification. The move marks the country’s first major petroleum agreements in more than a decade and signals renewed investor confidence in Liberia’s economic potential.
The contracts were signed between the Government of Liberia and two international oil giants, TotalEnergies EP Liberia LLC and Oranto Petroleum Liberia Limited. Each company received four offshore blocks along Liberia’s Atlantic coastline following months of negotiations led by the Liberia Petroleum Regulatory Authority (LPRA).
In his submission letter to House Speaker Richard Nagbe Koon, President Boakai described the deals as a turning point for the country’s energy future. “These agreements represent Liberia’s first upstream petroleum contracts in over a decade and signal renewed international confidence in our hydrocarbon potential,” he wrote.
He added that the contracts align fully with his administration’s ARREST Agenda for Inclusive Development, which prioritizes job creation, economic growth, and improved public services across Liberia.
Under the new production-sharing contracts, TotalEnergies secured exploration rights over Blocks LB-06, LB-11, LB-17, and LB-29. Oranto Petroleum received Blocks LB-15, LB-16, LB-22, and LB-24. Together, the eight blocks cover tens of thousands of square kilometers in Liberia’s deepwater basin.
This marks the return of major global players to Liberia’s underexplored offshore basin, which has remained idle since 2013 when global oil price declines and governance issues pushed investors out.
The financial terms of the contracts are structured to provide immediate benefits to Liberia’s economy while ensuring institutional strengthening for the LPRA and other oversight bodies.
TotalEnergies is expected to pay a US$3 million signature bonus per block, with US$400,000 allocated to the LPRA and US$2.6 million directed to the Consolidated Fund. The payments are due within 30 days of the effective date.
In addition, TotalEnergies will provide US$1.25 million upon acquiring new seismic data and another US$1.25 million when the first exploration well is approved. The company will also contribute US$500,000 annually to the Energy Development Fund and pay an equal amount in administrative fees to the LPRA.
Oranto Petroleum’s contract terms include a US$1.25 million signature bonus per block, of which US$400,000 goes to the LPRA and US$850,000 to the Consolidated Fund. The payment is due within 120 days.
Oranto will also pay US$1.25 million upon acquiring seismic data, another US$1.25 million upon approval of the first exploration well, and an annual US$500,000 each to the LPRA and the Energy Development Fund.
President Boakai said the structure of the agreements ensures that both companies contribute to national development, environmental protection, and community engagement while providing fair commercial returns.
Following the submission, the House of Representatives instructed its Committees on Hydrocarbon, Investment and Concessions, Contracts and Monopolies, and Judiciary to review the contracts and present a report within two weeks.
Speaker Koon told lawmakers the contracts would be treated with both urgency and scrutiny. “These contracts are important for our country’s development, but we must do due diligence,” he said. “The committees will scrutinize every clause to ensure the Liberian people benefit.”
Under Liberia’s 2019 Petroleum Law, all production-sharing contracts must receive bicameral legislative ratification before taking effect. The law also emphasizes local content participation to ensure that Liberian workers and companies play a central role in the petroleum value chain.
Liberia’s last major oil exploration efforts ended in 2013 after Chevron and other international companies relinquished their offshore blocks due to falling global oil prices and uncertainty in governance.
Since then, the country’s oil sector has been largely dormant, contributing little to national revenue. Multiple efforts to revive it have been hindered by weak institutional capacity and limited investor confidence.
Energy experts say the new contracts could restore momentum in exploration and help diversify Liberia’s economy beyond its dependence on rubber and mining exports.
According to LPRA estimates, the awarded blocks, particularly those held by TotalEnergies, span roughly 12,700 square kilometers in some of the most technically advanced deepwater regions along the West African coast.
Economists project that the deals could generate over US$17 million in upfront payments once ratified, providing a crucial boost to the national budget while laying the groundwork for potential future production.
However, experts caution that real economic benefits may take several years to materialize, as exploration timelines are typically lengthy and dependent on successful discoveries.
“Exploration is just the beginning,” said a regional energy consultant involved in the negotiations. “Liberia must ensure governance reforms and transparency keep pace with investor enthusiasm to avoid the mistakes seen in other resource-rich nations.”
The LPRA said the contracts were negotiated under transparent and competitive conditions in line with the 2019 Petroleum Law. Officials confirmed that international advisors participated in the process to ensure compliance with the Extractive Industries Transparency Initiative (EITI).
President Boakai reaffirmed his administration’s commitment to openness and accountability, pledging to publish key contract details once the agreements are ratified.
“Transparency is fundamental to rebuilding public trust,” Boakai said. “These agreements will be managed in line with international best practices to benefit all Liberians.”
If approved, the contracts could position Liberia as a rising energy frontier in West Africa, creating new economic opportunities, strengthening public institutions, and attracting long-term foreign investment.
