Liberia has high hopes of gaining revenue from oil and gas, currently hidden in its underground (onshore) and below the floor of the ocean (the offshore). The country is currently concentrating on exploring for oil or gas reserves worth commercial exploitation in its 17 existing offshore blocks.
It has no plans to offer an additional 13 unexplored blocks, the National Oil Company (NOCAL) has said. In a latest update posted on its website, NOCAL said the goal is to lease Liberian oil blocks only to those companies best suited to both explore for and produce the country’s petroleum resources. All companies seeking to explore in Liberia, including its offshore territories, should expect to meet the country’s high standards for corporate responsibility, NOCAL warns.
The scramble for Liberian oil only swept off ten blocks, and these blocks are currently being aggressively explored, [including blocks 8 & 9 already discussed in our Friday edition of the Daily Observer’s data analysis] by investors and international oil companies. It may be recalled that in February of 2012, African Petroleum (AP) announced a significant oil discovery at Narina-1.
Located off the coast of RiverCess, oil block 10 is in its second exploration period with 25% of delimited area relinquished with no well drilled. The block is owned by an American company, Anadarko (80%); Japan’s Mitsubishi (10%) and Spain’s Repsol (10%). Its initial exploration contract was signed, amended and ratified by the Legislature in 2009. It has a duration of an exclusive exploitation authorization is 25years.
Based on production levels, NOCAL gets 40% at production rate 0 to 100,000 barrels, while the companies take away 60%. At production rate 100,000 to 150,000 barrels, it would be a 50 - 50 share between the companies and NOCAL. But NOCAL stands to carry 60% in case of 150,000 oil barrels, while the companies would make away with 40%. But in case natural gas is found, the production sharing contract calls for 40% to be given to NOCAL and 60% for the companies.
The block consists of a total surface area of 3440sq.km; relinquished area of 859.99 sq. km and retained area of 1719.7sq.km, as per the contract. So far, no well has been drilled. Already, the operator (Anadarko) has conducted geological and geophysical data acquisition including 3D seismic to help better define what the block might be able to offer.
As posted by NOCAL on its website, under exploration period and work commitment, phase I will account for US$33 million as per the production sharing contract and is expected to last for three years. Phase II is expected to last for two years with US$50 expected as per the production sharing contract and US$66 million for phase III which is also expected to last for three years.
Meanwhile, as part of her activities in Japan, President Ellen Johnson Sirleaf Friday met with the top management of Mitsubishi Corporation – which holds a 10% share in block 10. During that meeting, President Sirleaf underscored Liberia’s need for energy, and suggested that the process be speeded up to help transform the country. She called for the establishment of public/private partnerships to help create jobs for the young people, and urged the company to send a trade mission to Liberia this year.
Situated off the coast of Grand Bassa County is oil block 11, owned by Chevron (45%), Orento (30%) and ENI (25%). The block comprises a total surface area of 3183.5 sq.km; relinquished area of 795.88 sq. km and retained area of 1571.81sq.km. In its second exploration period with 25% of delimited area relinquished with one well drilled, the block has a duration of an exclusive exploitation authorization is 25 years. Its initial exploration contract was signed, amended and ratified by the Legislature in 2010. Provisions in its production sharing contract are as in that of block 10. The only difference is that in case natural gas is found, NOCAL stands to benefit only 30%, while the block’s operator carried 70%.
Meanwhile, as part of her activities in Japan, President Ellen Johnson Sirleaf Friday met with the top management of Mitsubishi Corporation – which holds a 10% share in block 10. During that meeting, President Sirleaf underscored Liberia’s need for energy, and suggested that the process be speeded up to help transform the country. She called for the establishment of public/private partnerships to help create jobs for the young people, and urged the company to send a trade mission to Liberia this year.
Situated off the coast of Grand Bassa County is oil block 11, owned by Chevron (45%), Orento (30%) and ENI (25%). The block comprises a total surface area of 3183.5 sq.km; relinquished area of 795.88 sq. km and retained area of 1571.81sq.km. In its second exploration period with 25% of delimited area relinquished with one well drilled, the block has a duration of an exclusive exploitation authorization is 25 years. Its initial exploration contract was signed, amended and ratified by the Legislature in 2010. Provisions in its production sharing contract are as in that of block 10. The only difference is that in case natural gas is found, NOCAL stands to benefit only 30%, while the block’s operator carried 70%.
The operator has conducted 3D seismic acquisition and drilled one well and the result indicated an active working petroleum system in the Liberia Basin. The well data is being integrated in other studies of the basin to determine prospectivity.
According to NOCAL, phase I of exploration of block 11 will last for five years with an expectation of US$8 million as per the production sharing contract; phase II will last two years with US$10 million and phase III will go for two years with US$ 10 million expected.
No comments:
Post a Comment