Two Foreign Companies Win Offshore Liberia Blocks

National Oil Company of Liberia

The National Oil Company of Liberia (NOCAL) announced on Tuesday that two foreign companies have won a bid for offshore petroleum exploration in Liberian territorial waters.

Anadarko Liberia Company, an American company, and Hong KongTong Tai Hong Kong/Chinese Petroleum International Corporation were declared winners of the bid upon the completion of a comprehensive evaluation conducted by an Inter-Ministerial Petroleum Technical Committee (IPTC).

The IPTC reports declaring the two companies winners of the bid were unanimously endorsed by NOCAL's Board of Directors.

At the presentation ceremony of the second bid round result held in Monrovia Tuesday, the President of NOCAL, Dr. Foday Kromah declared Anadorko Liberia Company winner for block LB-10, while Hong Kong TongTai Hong Kong/Chinese Petroleum International Corporation Limited is awarded blocks LB-6 and LB-7.

He said Mittal Investments which was part of the process, bided for two blocks LB-7 and LB-10, adding "with the condition that it was a linked two block bid and block LB-7 would not be accepted on its own."

Dr. Kromah told the audience that negotiations for Production Sharing Contract (PSC) between the companies and NOCAL would begin shortly.

Also speaking at the occasion, Finance Minister Augustine Nguafuan said the declaration of the two companies as winners of the bids was the government's way of attracting private sector investment to reduce the level of unemployment in Liberia.

He urged the companies to operate within the confines of the laws and as partners to the Liberian Government to help ensure economic revitalization.

It can be recalled that on December 1, 2007, NOCAL launched its second round bid which ended on July 1, 2008.

Following the opening of a biding process for the offshore exploration of petroleum by the Liberian Government, three companies submitted bids in accordance with the biding requirements.

After the submission of the bids, an international consulting company, H &J Consulting, conducted a due diligence and its finding shows that the three companies possess the legal status, financial and technical capacities to carry out petroleum exploration activities and investment in conformity with the proposed projects.