The legislature in Liberia has given its nod to a production sharing arrangement with a Nigerian oil firm operating in that country.
The Liberian Senate at the weekend concurred with its House of Representatives on the bill to ratify the production sharing contract (PSC) between the Republic of Liberia, the Liberty Petroleum Corporation of Liberia, the Pillar Oil Limited of Nigeria, and the New Millennium Oil & Gas for Liberia’s offshore Oil Block LB16.
According to the secretary of the Senate, J. Nanborlor F. Singbeh, who briefed the legislative press at the weekend, the awarding of the contract was recommended by an American company, Ernst & Young, involved in the vetting of companies that participated in the bid round earlier this year.
The Liberian President, Ellen Johnson-Sirleaf, earlier wrote to the Senate, requesting the Senators to delay the closure of their session for this year’s constituency break so that she could submit a detailed negotiation report on the exploration of oil blocks. In her communication to the legislature, Sirleaf noted that “for the past two months, the National Oil Company of Liberia (NOCAL) has been concluding negotiations with certain international oil companies for the exploration of the final oil blocks that were initiated under the 2002 Petroleum Law.
“We are nearing completion of the process but need more time in order to make full submission to you. I, therefore, request your consideration of a delay in the closure of your Honorable body. “
Liberia Daily Observer reported that the Senate, together with the House of Representatives, accepted the president’s request, and the Joint Energy Committees of the Senate and House of Representatives, together with the NOCAL and other stakeholders of the oil sector, held closed door conferences at the Capitol Building.
However, a former head of the NOCAL, who is currently running for the senatorial seat of the Montserrado County, Mr Christopher Neyor, threatened to ask the Supreme Court of Liberia to place an injunction on the sale and ratification of any oil blocks in the midst of the fight against the Ebola outbreak.
In another development, the Senate also at the weekend during its executive session, concurred with the House of Representatives to ratify the New Petroleum Law (exploration and production Act of 2014), and the NOCAL Act of 2014.
Source : Leadership