Liberia Looks Ahead With New Oil Bid Round
Oil producers often require block ownership to be split 50-50, or close to, with the state-owned oil company but Liberia's stake could be as low as 10 percent, while also allowing foreign companies to farm out further stakes.
As its oil and gas sector is still nascent, the country is aiming to boost national expertise by including a new "local content" clause in its term negotiations.
Foreign companies will be given incentives through a point system within the bid round to work with a significant regional oil company, which will have an non-operating stake of around 20 percent and in which Liberian investors have an interest.
"The IOCs (International Oil Companies) will pick between 5-10 regional companies, like from Nigeria, Sierra Leone and Ghana, who are already producing," the board member said. "We also believe that the inclusion of a local component will prevent governments from revisiting contracts in the future."
Since 2011, six wells have been drilled showing signs of oil but they were not commercially viable for further exploitation, although more drilling is planned.
Tullow Oil has pulled out of the country, but Chevron, Anadarko and African Petroleum are among those with a major presence.
Last year, ExxonMobil signed into a block and was due to start drilling this year but has postponed the project until 2015 due to the Ebola crisis.
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