The Liberia Petroleum Regulatory Authority (LPRA) has pre-qualified Seven (7) Liberian companies that applied to be pre-qualified for the country’s ongoing Offshore License Round for the Harper Basin.
This follows a vigorous evaluation process in which the evaluation panel set up by the LPRA and the government denied two of the nine Liberian companies for lack of legal and financial competence.
The evaluation team, which comprised representatives from the National Oil Company of Liberia (NOCAL), the Ministry of Mines and Energy (MME), Ministry of Finance and Development Planning (MFDP), the Liberia Revenue Authority (LRA) and the LPRA, pre-qualified the following companies: DEMUS Exploration and Production, Jungle Energy Power INC, New Millennium Oil and Gas, Africa Oil and Gas Inc, Green Petroleum (Liberia) Limited, MAC-Africa Petroleum Inc and the TSC Global Inc.
Pre-qualification of Liberian companies is in line with the New Petroleum Law of Liberia which sets aside a mandatory minimum 5% equity interest in all Petroleum agreements to companies owned by natural persons of Liberian Citizenship.
The list of Liberian companies that has been pre-qualified by the LPRA will be submitted to qualified international bidders for possible partnership in fulfillment of the amended petroleum law.
Nine oil offshore blocks, which have been unexplored and un-drilled in the Harper Basin, are being offered for bidding. The Bid Round runs from April 2020-February 2021.
The LPRA on June 5, 2020, held a meeting with representatives of the Liberia Business Association (LIBA), Liberia Chamber of Commerce (LCC) and the Patriotic Entrepreneurs of Liberia (PATEL) to fully explain the processes and relevance of Liberian companies participating in the licensing round.
During a meeting, the LPRA Director-General, Hon. Archie Donmoe, stressed the significance of Liberian companies participating in the petroleum sector and pointed out, “I encourage everyone to take advantage of this tremendous opportunity which is potentially one of the means of promoting private sector growth in this county.”
According to the LPRA, the calls for more Liberian companies involvement in the 2020 offshore licensing round is hinged on President George Weah’s inaugural promise that “Liberians will not be spectators in their own economy.”
The desire to incorporate more Liberians or indigenous businesses is further based on the indigenization mandate by the Liberian government as required in section 36(a) of the Amended Petroleum Law of Liberia which sets aside a mandatory 5% interest in all petroleum agreements to companies owned by natural persons of Liberian citizenship.