Liberia Expands Pre-Qualification Time Frame to Accentuates Crusade for the Indigenization in Oil and Gas Sector

By Abdul Rahman Bangura–

Liberia Petroleum Regulatory Authority
Photo Credit: Facebook

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone- Experiencing organizations of the discussion touted the LPRA for the ambition and asserted concern in operating with the Authority in assuring that, Liberian corporations are entirely encompassed in the petroleum sector particularly; during the 2020 offshore licensing round.

Going forward, through a compromises of guaranteeing that Liberian retained firms completely partake in the country’s ongoing offshore petroleum licensing round, the Liberia Petroleum Regulatory Authority (LPRA) on June 5th, 2020, wielded a meeting with diplomats of the Liberia Business Association (LIBA), Liberia Chambers of Commerce (LCC) and the Patriotic Entrepreneurs of Liberia (PATEL) to entirely clarify the procedures and applicability of Liberian firms contributing in the licensing round.

During the meeting, the LPRA Director-General, Archie Donmo, demanded the importance 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.”

Partaking institutions of the meeting commended the LPRA for the initiative and conveyed interest in working with the Authority in ensuring that Liberian companies are fully involved in the petroleum sector particularly during the 2020 offshore licensing round.

The decision to incorporate Liberian companies in the 2020 offshore licensing round is swung on the President’s that “Liberians will not be spectators in their own economy.” It is further established on the indigenization statute by the Government of Liberia as compelled 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. To promote the enforcement of this provision, LPRA is conducting pre-qualification of Liberia companies and has handed out a request for expression of interest.

The pre-qualification process which began March 17, 2020, was recorded to end June 30, 2020. Nonetheless, due to a plea from the Liberian Business Community (LCC, LIBA, PATEL) and in consideration of the state of emergency as a result of the Covid-19, the Authority has broadened the deadline for expression of interest to July 31st, 2020.

Precisely, a Q&A zoom meeting is planned to be held on Friday, June 12th, 2020 at which time Liberian firms eager in participating in the ongoing licensing round will be given the opportunity to ask the essential questions associating with the bid round. LPRA exhorts Liberian corporations to grab windfall of this alternative and view themselves as friends in the pursuit for hydrocarbon resources.

Nine offshore blocks in the Harper Basin are being submitted during the licensing round. This region represents Liberia’s most forthcoming geological regions and the only unexplored and undrilled region in West Africa Transformed Margin.