Boakai Submits Oil Deals to Legislature

Published: October 22, 2025

MONROVIA — Signaling a long-awaited revival of Liberia’s dormant oil sector, President Joseph Nyuma Boakai has submitted eight offshore production-sharing contracts to the Legislature for ratification, the country’s first major petroleum agreements in more than a decade.

The deals, signed between the Government of Liberia and two international energy giants, TotalEnergies EP Liberia LLC and Oranto Petroleum Liberia Limited, grant each company four exploration blocks along Liberia’s Atlantic coast. The agreements follow months of negotiation led by the Liberia Petroleum Regulatory Authority (LPRA) and are being hailed by the Boakai administration as a milestone for energy reform and investor confidence.

“These agreements represent Liberia’s first upstream petroleum contracts in over a decade and signal renewed international confidence in our hydrocarbon potential,” President Boakai wrote in his letter to House Speaker Richard Nagbe Koon. “They are in full alignment with the Government’s ARREST Agenda for Inclusive Development, which prioritizes economic revitalization, job creation, and improved social services across the country.”

TotalEnergies, Oranto Lead Return to Liberia’s Offshore Basin

Under the new production-sharing contracts (PSCs), TotalEnergies secured Blocks LB-06, LB-11, LB-17, and LB-29, while Oranto Petroleum received Blocks LB-15, LB-16, LB-22, and LB-24, together covering tens of thousands of square kilometers in deepwater territory off the Liberian coast.

The agreements mark a significant re-entry for global oil players into Liberia’s underexplored basin, which has remained quiet since 2013, when global price shocks and governance concerns drove investors away.

Millions in Bonuses and Commitments

The financial terms of the agreements are designed to inject immediate cash into the national treasury and strengthen oversight institutions such as the LPRA.

For TotalEnergies EP Liberia LLC:

• US$3 million signature bonus per block, with US$400,000 allocated to the LPRA and US$2.6 million to the Consolidated Fund, payable within 30 days of the effective date.
• US$1.25 million upon acquisition of new seismic data.
• US$1.25 million upon approval of the first exploration well.
• Annual administrative fee: US$500,000 to LPRA.
• Annual contribution: US$500,000 to the Energy Development Fund.

For Oranto Petroleum Liberia Limited:

• US$1.25 million signature bonus per block, with US$400,000 to LPRA and US$850,000 to the Consolidated Fund, payable within 120 days.
• US$1.25 million upon seismic data acquisition.
• US$1.25 million upon approval of the first exploration well.
• Annual administrative fee and Energy Fund contribution: US$500,000 each.

Boakai said the structure “balances fair commercial returns with national interest,” ensuring that both companies support local development and environmental stewardship while generating new fiscal space for government priorities.

Legislature Begins Review

Following the submission, the House of Representatives mandated its Committees on Hydrocarbon, Investment and Concessions, Contracts and Monopolies, and Judiciary to review the contracts and report back within two weeks.

Speaker Richard Koon, presiding over the session, said the Legislature would treat the submission with “urgency and scrutiny.”

“These contracts are important for our country’s development, but we must do due diligence,” Koon 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 requires strict adherence to local content provisions, ensuring that Liberian firms and workers participate in the value chain.

Dormant Sector Seeks a Comeback

Liberia’s last major oil exploration activities date back to 2013, when a consortium led by Chevron relinquished its offshore blocks amid global crude price collapses and operational uncertainty.

Since then, the sector has been largely idle, contributing no significant revenue. Multiple attempts to revive it faltered due to governance gaps, weak infrastructure, and investor skepticism.

The new contracts, observers say, could reignite exploration momentum and diversify Liberia’s economy beyond its traditional reliance on mining and rubber exports.

According to the LPRA, the eight awarded blocks, especially those granted to TotalEnergies, are among the largest and most technically advanced ever offered, spanning roughly 12,700 square kilometers in deepwater regions.

Economic Stakes and Strategic Importance

The Boakai administration views the deals as cornerstones of its ARREST development agenda, aimed at reviving growth, creating jobs, and restoring investor confidence in post-pandemic Liberia.

If ratified, the contracts could immediately yield over US$17 million in signature bonuses and other upfront payments, while positioning Liberia to benefit from any commercial oil discoveries in the coming years.

Economists caution, however, that actual production could be years away, and the real test will lie in transparent contract enforcement, prudent use of revenue, and environmental safeguards.

“Exploration is just the beginning,” said a regional energy consultant familiar with the negotiations. “Liberia must ensure that governance reforms match investor interest — otherwise, the resource curse risks repeating itself.”

Transparency and Oversight Commitments

The LPRA emphasized that the contracts were negotiated under the 2019 Petroleum Law, which replaced discretionary licensing with open, competitive bidding.

LPRA officials said the process included public consultations, inter-agency reviews, and oversight from international advisers to ensure compliance with the Extractive Industries Transparency Initiative (EITI) framework.

President Boakai has also pledged to publish key contract details once ratified, reinforcing his administration’s commitment to accountable resource management.

“Transparency is fundamental to rebuilding public trust,” Boakai said. “These agreements will be managed in line with international best practices.”