Liberia’s Direct Negotiation Round Unlocks Offshore Potential – Africa.com
Last August, the Liberian government, through the Liberia Petroleum Regulatory Authority (LPRA), launched a direct negotiation licensing round offering 29 offshore blocks in the Liberian and Harper basins. The licensing program is designed to stimulate further exploration and production activity in Liberia’s offshore oil and gas industry, consistent with the government’s broader goals of economic diversification, sustainable energy development and attracting significant foreign investment. Below is an overview of available licensing opportunities, from technical specifications to potential impact on the industry.
Technical specifications
Licensing opportunities in Liberia are primarily concentrated in areas offshore Liberia and the Harper Basin, areas recognized for their geological potential and underexplored prospects. The round includes a diversified portfolio of 29 offshore blocks, covering both developed and unexplored areas.
To assist potential investors, Liberia has partnered with energy data company TGS to provide an extensive multi-client subsurface data suite. The dataset contains over 24,000 kilometers of 2D seismic data and over 26,000 square kilometers of 3D seismic data. Among them, TGS has reprocessed 5,100 square kilometers of 3D seismic data and 12,000 kilometers of 2D seismic data, using advanced pre-stack depth migration technology to image subsurface features more clearly. The technology is particularly beneficial for understanding key targets within Cretaceous reservoirs, thereby enhancing the prospects for successful exploration and development.
These blocks are located in syn-rift Lower Cretaceous to deepwater Cretaceous geological strata, with various source rock sections in the strata. The high-quality seismic data provided, which also includes gravity and magnetic data, will give bidders a comprehensive understanding of the potential of these unexplored but proven petroleum systems. This information is critical to evaluating potential clients and making informed decisions during the bidding process. This licensing round follows the 2019 amendments to Liberia’s Exploration and Production Act, which were designed to ensure a competitive and transparent process. The inclusion of 100% cost recovery on pre-production shared contract seismic data further increases the attractiveness of this round, providing investors with a clear path to recoup initial exploration costs.
what to expect
This direct negotiation process marks an important step in Liberia’s strategy to accelerate the development of offshore resources and increase oil production. The government owns 29 blocks in the promising basin and aims to attract international oil companies with the technical and financial capabilities to develop offshore fields. At the same time, this licensing round also provides opportunities for smaller independent companies better suited to exploiting fringe areas.
Liberia’s offshore sector has long held potential, but much of it remains underexploited. The high-quality seismic data provided by TGS and the availability of various blocks are expected to spark renewed interest in the country’s offshore hydrocarbon resources. Notably, the inclusion of both shallow and deepwater prospects in this round is likely to encourage bids from a broad range of investors, each with unique expertise and capabilities. This licensing round is expected to not only bring significant foreign investment as the industry develops, but will also lay the foundation for new job creation, technology transfer and local capacity building in Liberia’s emerging oil and gas industry.
Impact on the industry
Liberia’s offshore blocks offer significant opportunities to unlock the country’s oil and gas potential, consistent with national socio-economic development goals. The availability of high-quality seismic data, coupled with favorable licensing terms including cost recovery of seismic data, is critical to attracting international investment. This licensing round is expected to stimulate exploration and drive new discoveries, with successful bids and exploration projects likely to enhance energy security and attract more foreign direct investment in new and related industries in the medium to long term.
The funding round will also provide opportunities to partner with established and global oil and gas players, thereby solidifying Liberia’s reputation as an attractive and competitive exploration and production destination. As the round progresses, the foundation will be laid for the continued growth of Liberia’s hydrocarbons industry and its integration into the larger West African energy landscape. The licensing round is expected to be presented at the African Energy Investment Forum in Paris in May 2025, providing further opportunities for potential investors. Liberia’s commitment to transparency and a competitive environment, coupled with the support of international data providers such as TGS, has made the country an emerging player in the West African oil and gas industry.
ISAE 2025 (http://apo-opa.co/4aitbqZ) is a specialized forum aimed at promoting investment in African energy markets and among global investors. The event will take place in Paris on 13 and 14 May 2025 and will give delegates two days of in-depth networking with industry experts, project developers, investors and policymakers. For more information, please visit www.Invest-Africa-Energy.com. To sponsor or participate as a representative, please contact sales@energycapitalpower.com.
Distributed by APO Group on behalf of Energy Capital&Power.
