LPRA Invites Liberian Companies for Upcoming Offshore Licensing Round

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LPRA Director-General, Archie N. Donmoe

– Begins pre-qualification process of local companies For 2020 offshore licensing round

The Liberia Petroleum Regulatory Authority (LPRA) is poised to conduct its next bid round in April this year—all in an effort to lure global petroleum giants back into the country’s oil sector.

And as part of efforts to make the upcoming bid successful and more participatory, the government through the LPRA has begun soliciting expressions of interest for pre-qualification from Liberian companies wishing to participate in the upcoming Offshore Licensing Round from April 10 to October 1, 2020.

This process is in keeping with the revised petroleum law of Liberia, which sets aside a mandatory 5% interest in all petroleum agreements to natural Liberian owned companies.

The LPRA in a statement Monday said Liberian companies wishing to be pre-qualified for the 2020 licensing round should submit a written expression of interest and provide required documents for expression of interest from March 17-April 30, 2020.

The bid round allows a single oil company or a group of oil companies to apply for a Production Sharing Agreement in a competitive and transparent environment, giving them the right to search for commercial deposits of oil.

According to the LPRA, a list of pre-qualified Liberian companies will be submitted to qualified international bidders for possible partnership in fulfillment of the amended petroleum law of Liberia.

“This move by the LPRA is a demonstration of the Liberian Government’s commitment to ensuring that indigenous Liberian Companies are directly involved in the petroleum sector of the country,” the LPRA’s release said.

The Authority, however, pointed out that any Liberian company that is not pre-qualified will not be allowed to participate whether independently or as a participant in a joint venture with an international company.

“Application package shall be submitted to the Authority’s head offices on 18th Street and sealed expression of interest must be addressed to: The Liberia Petroleum Regulatory Authority (LPRA), to the attention of Rufus Tarnue, Deputy Director-General for Technical Services 18th Street, Sinkor, 1000 Monrovia, 10 Liberia,” The Authority said.

It added: “Interested companies are requested to apply individually and not as a conglomerate or under a joint venture. Applications submitted for a group of companies or a joint venture will not be processed. This does not exclude a subsidiary from applying and listing a parent company in support of its application. The notice of qualification, if approved, will be granted to the subsidiary alone. Applicants should note that notice of qualification fee, which is US$5,000 is nontransferable and nonrefundable.

The Authority indicated that companies wishing to participate should submit a request for banking information from LPRA via its email address ([email protected]).

The Liberia Petroleum Regulatory Authority (LPRA) was created by an Act of the Legislature in October 2016 following an aggressive reform program within the petroleum sector initiated in 2010. The reform resulted in the development and endorsement of the National Petroleum Policy of Liberia, the NOCAL Act 2013, and the Petroleum (Exploration and Production) Reform Law, 2014.

Meanwhile, as an independent regulatory government entity, the LPRA is responsible to conduct a technical evaluation of the areas to be opened up for petroleum operations; supervise and manage bid rounds and all other associated processes; enter into petroleum agreements and monitor petroleum operations; administer petroleum rights; supervise petroleum data storage, and assist the Liberia Revenue Authority (LRA) in collecting lawful revenue accruing to the state under all petroleum-related agreements or licenses.

2 COMMENTS

  1. The first company is owned by George Weah. The next company is owned by the Samuel Tweah. The next company is owned by McGill. The company is owned by the Grand Kru Senator as Pro-temp , and House Speaker Chambers and the House committee chairman on Judicial affairs from Grand Kru County. Now, one can only hope no oil is found. The bid is just another window dressing. The companies and their agents are all lined up. About the oil, no company is coming with the price for a barrel of oil at almost 20 United States dollars. What company is in their right mind to spend hundreds of millions US dollars on oil search? But with the price of oil that low and a regime like Liberia that is so corrupt and bankrupt and desperate for cash, a company could buy the oil block for cheap and keep it as a future investment portfolio. No need to search for oil at 30 United States dollars per barrel. And so the company will just sit and sit and sit until the price of oil reaches 100 US dollars. Right now there is fight between Russia and Saudi Arabia that is responsible for the low oil price on the free market. There is another opinion that the Russians are fighting the Saudis to keep the price of down , with the hope of pushing the American oil companies into bankruptcy . And that has begun to show. With some oil companies thinking of layoff some of their workers. And oil producing states in the US have already started feeling the lost of revenue. Another thing that makes this inexperienced regime so economically reckless is in its decision to carry out oil bid is the prediction of a wide world recession in caused by the China virus that is affecting the free market . So why should this regime be so reckless to sell the oil blocks ? Perhaps the only potential resources left for the country to negotiate with to potential future investors . Ellen Johnson Sirleaf and her son did it and walked away with ten million US dollars and left the so-called oil company in bankruptcy. And so the official policy of the Weah regime is , Monkey see Monkey do. What a corrupt regime ? What a corrupt regime ? For the citizens of that land, what you know and see from that regime, is what you will get from that very regime.

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