Liberia is yet to award exploration rights for 20 of its 30 oil blocks, according to a data analysis conducted by me recently. Stats posted on the country’s National Oil Company’s (NOCAL) website show only 10 blocks have been leased. The remaining 20 are open.
The Liberian basin consists of 30 concessionary blocks, according to NOCAL. Seventeen of these blocks are in the outer continental shelf in water depths between 2,500 meters (8,202 ft) and 4,000 meters (13,123 ft). Thirteen of the blocks are considered ultra-deep with water depths as deep as 4,500 meters (14,764 ft).
The country is concentrating on the 17 existing offshore blocks, and it has no plans to offer additional blocks. A third round of bids in anticipation of awarding contracts for Blocks 1-5 was cancelled by NOCAL in 2011. No bids have since been accepted for these blocks.
I have gathered that justification given by NOCAL for the cancellation of the bid for the above-mentioned blocks was linked to a review of the country’s petroleum policy. Since then (2011), NOCAL has remained mute about the inactivity---no update provided as to whether the bid has been reopened, or blocks (1-5) awarded already or not.
Blocks 6 and 7, once under review, are still being negotiated since they were never fully submitted to the president or legislature nor executed. Again, NOCAL is yet to update the public on the status of these oil blocks.
But admitting that a round of bids for blocks 1-5 was indeed canceled, NOCAL president, Dr. Randolph McClain, added that nothing will happen with these blocks until bids are reopened. He did not say when, however. Besides, all he could say regarding the status of blocks 6 and 7 was that bids just did not reach the point of conclusion. “All I can tell you is that those have not been concluded,” he told me Thursday.
NOCAL confirmed that there are no plans to offer additional blocks at this time – neither the five remaining off-shore blocks 1-5, nor the ‘ultra-deep’ blocks (18-30) on the seaward side of the original 17 offshore blocks.
Situated off the Sinoe County coast, block 8, according to NOCAL, is in its second-exploration phase. It is owned [100%] by an Australian oil company, African Petroleum Ltd. African Petroleum, according to NOCAL’s website, has conducted geological and geophysical data acquisitions including 3D seismic to help better define the prospectivity (likely to be something good) generated by the block.
The initial contract for this block was signed in 2005, amended and ratified by the Legislature in 2008. The production sharing contract for block 8 provides that at production rate 0 to 100,000 barrels, NOCAL gets 40% while African Petroleum gets 60%; at 100,000 to 150,000 barrels, NOCAL gets 50% and 50%; and at 150,000 barrels, NOCAL gets 60% and African Petroleum gets 40%.
In case natural gas is found, NOCAL gets 30% and the block’s owner gets 70%. African Petroleum has conducted little of the exploration activities in Block 8 with no wells drilled. African Petroleum is processing more of the Geological & Geophysical data to help determine where the next well will be drilled in Block 8 to satisfy the PSC work program.
Situated off the coast of River Cess and Sinoe counties, oil block 9 [also owned 100% by African Petroleum], is in its second exploration period with 25% of its initial delimited area relinquished and three (3) exploration wells drilled, NOCAL has said.
The initial contract for this block was signed in 2005, amended and ratified by the Legislature in 2008. Based on production levels, at production rate 0 to 100,000 barrels, NOCAL gets 40% while the block’s owner gets 60%; at 100,000 to 150,000 barrels, both parties get a 50 – 50 share and at 150,000 barrels, NOCAL walks away with 60%, while African Petroleum nets 40%. And in case natural gas is found, NOCAL takes 30% while African Petroleum makes away with 70%.
According to NOCAL, three exploratory wells have been drilled in this block: Apalis-1 in Q4 2011, Narina-1 in Q1 2012, and Bee-Eater-1 in Q1 2013.
In February 2012, African Petroleum (AP) announced a significant oil discovery at Narina-1. AP’s 3rd well in Block 9, called Bee Eater1, was also an exploratory well to determine the extent of Narina-1 pay and also to determine the commercial viability of the prospects from Narina-1 well discovery. This has a net pay of 32 meters (105 feet) with 21 meters (69 feet) in the Turonian and 11 meters (36 feet) in the Albian. Good quality oil [was found] in Turonian and Albian reservoirs with 37 degree API and 44 degree API respectively, says NOCAL.
The block’s owner has also claimed a discovery in Bee-Eater-1, but said it is presently looking at the data to provide more information.
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