Published: April 1, 2026
MONROVIA — Liberia’s petroleum regulator has begun awarding offshore oil blocks through an Executive Allocation process, positioning the National Oil Company of Liberia (NOCAL) and its selected partners to secure production contracts under a framework that centralizes presidential approval, regulatory vetting, and legislative oversight.
The Liberia Petroleum Regulatory Authority (LPRA) said the process is already being applied to four offshore blocks, marking a decisive shift in how petroleum rights are being granted, with Production Sharing Contracts (PSCs) to be negotiated and finalized only after multiple layers of scrutiny.
Structured Path to Contract Award
Under the framework, petroleum contracts are not awarded at the point of allocation. Instead, it unfolds through a sequenced process beginning with NOCAL’s request for unencumbered offshore blocks and a formal appeal to the Office of the President for executive approval.
A presidential decision authorizing the allocation sets the process in motion, but does not constitute a final award.
The LPRA then issues an assurance letter to NOCAL, signaling the government’s intent to award petroleum rights, while simultaneously requiring the company to identify and present partners capable of undertaking offshore exploration and production.
Pre-Qualification and Due Diligence
The pathway to contract award tightens at the pre-qualification stage, where all proposed partners must meet strict financial, technical, and legal criteria.
An independent third-party firm is engaged to conduct due diligence and produce a comprehensive report that determines whether the consortium is fit to proceed. The LPRA then communicates the outcome to both NOCAL and the Presidency.
Only those partnerships that pass this stage are invited into formal negotiations.
Negotiating the Production Sharing Contracts
During the award process, negotiations on Production Sharing Contracts, which define the commercial and legal terms governing Liberia’s offshore resources, take place.
These negotiations are conducted jointly by the LPRA and key government institutions, including the Ministry of Finance and Development Planning, the Ministry of Justice, and the Liberia Revenue Authority.
The process is expected to last between 30 and 60 days, during which fiscal terms, revenue-sharing arrangements, cost recovery mechanisms, and regulatory obligations are determined—elements that ultimately shape the value Liberia derives from its petroleum sector.
Legislative Ratification Finalizes Awards
Even after negotiations are concluded, the contracts remain provisional until they pass through the final stage of legislative ratification.
Signed PSCs are first submitted for presidential assent and then forwarded to the National Legislature, which holds the authority to ratify and publish the agreements. Only after this step do the contracts become legally binding, formally granting petroleum rights to NOCAL and its partners.
Transparency and Oversight
The LPRA said the Executive Allocation process, though faster than competitive bidding, remains subject to statutory safeguards under the 2019 Petroleum Law.
By publishing both the framework and pre-qualification requirements, the regulator says it aims to reinforce transparency while maintaining investor confidence in Liberia’s petroleum governance system.
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