— Says these could scare away investors
Mr. Christopher Zeoh Neyor, a prominent energy expert and former CEO of the National Oil Company of Liberia (NOCAL), has expressed concerns about the spread of false information that could discourage potential investors from engaging in Liberia’s oil and gas sector.
While emphasizing the importance of maintaining accurate and transparent discourse in relation to investment opportunities in the country, Neyor clarified what he referred to as the misrepresentation of the Oranto-Chevron deal, which took place during the first term of former President Ellen Johnson Sirleaf.
His warning was in reference to what he termed as negative media reports against the presence of Nigerian billionaire businessman, Prince Arthur Eze, in Liberia and the manner and form in which he previously acquired the oil blocks and accumulated profits.
Eze reportedly acquired offshore oil blocks 11, 12, and 14 for $200,000 each and paid a registration fee of $10,000. These blocks span over 9,560 square kilometers on the shelf and continental slope of Liberia, with water depths ranging from 0 to 3,000 meters.
Allegations suggest that Eze sold the blocks to Chevron Corporation in 2010 for $250 million, making a substantial profit of $200 million. Dr. Neyor highlighted that Chevron conducted a thorough assessment of the acquisition process in compliance with US anti-corruption laws before finalizing the deal, with no evidence of impropriety found. As part of the negotiating team during the transition, he affirmed that the Oranto-Chevron agreement adhered to the US Foreign Anti-corruption Act (FCPA).
“Chevron paid Oranto US$50 million to acquire 70% of each of Oranto’s three blocks totaling US$150 million on which they paid GOL tax. The principal of Oranto, Prince Arthur Eze, did not gain his current US$8 billion net worth from a US$150 million deal in Liberia,” he said. “Nobody knows more about the Oranto-Chevron deal than me, a transaction which occurred just before I became CEO of NOCAL.
“Why do we badmouth and envy Africans especially from Nigeria, a country that made huge human and financial sacrifices to rescue Liberia when we were deserted during our Civil War, but glorify and promote non-African business people who have exploited our country for decades?” Neyor wondered.
Neyor highlighted that the Petroleum Sharing Contract (PSC) did not include any provision for transaction fees to be paid to NOCAL. During his time at NOCAL, he introduced Regulation 001, which imposed a mandatory 20% transaction fee on flipped assets. He emphasized that individuals who made profits from national assets due to a lack of contractual safeguards should not be condemned.
Neyor noted that Oranto’s collaboration with Chevron led to further partnerships, including attracting ExxonMobil to the region. Additionally, he highlighted a managed divestment initiative concerning the Broadway/Pepper coast from block LB13, resulting in a notable contribution of $50 million to the Government of Liberia. He emphasized the substantial financial investments required for oil exploration, citing the significant expenses involved in data acquisition, geological interpretation, and drilling activities.
He also acknowledged the inherent risks associated with the industry, noting that substantial financial resources can be expended even if a well yields unfavorable results.
“It costs about US$80-100 million for drilling of each well in our deep water. Our basin has been dormant for the last 8 years or so. Not one company came into the basin in the six years of the Weah administration,” Neyor said. “To restart activities in the basin requires a strategy to attract oil entities that are respected in the oil business and who can draw other players to help create critical mass in drilling operations.”
“We can discover oil or gas only when we drill and the more drilling we attract the quicker we could be to discovery”, he added
Neyor emphasized the importance of having Oranto and ExxonMobil, two reputable Exploration and Production (E&P) companies, investing in Liberia’s basin. He noted that there is ample opportunity for both companies to contribute to the country. He suggested that Liberia should reflect on past experiences and effectively oversee the current licensing process in the sector.
He cautioned against spreading misinformation about Oranto, as doing so only benefits those with alternative motives.
“We can discover oil or gas quicker when we have a critical mass in drilling by qualified E&P (Exploration and Production) companies.”
On Eze’s trip, Neyor disclosed that the prime reason for the Nigerian investor’s recent two-day trip to Liberia was not to negotiate oil blocks, even though oil is his mainstay. According to him, Eze has expressed interest again in Liberia’s offshore base upon a request he (Neyor) made to him (Eze).
He noted that as a friend of Liberia and President Joseph Nyuma Boakai, investor Prince Arthur Eze brought in the country two Chinese investors with interest in key sectors-one of which is to further explore for bauxite.
According to him, one of the investors, name withheld, has already invested over a billion United States dollars in four African countries. He maintained that these investors were drawn to Liberia because of their relationship with Prince Arthur Eze.
Neyor stated that the Chinese investors had initial discussions with the Minister of Mines and Energy Wilmot Paye and they are expected to return to Liberia with a team of geologists.
“There is nothing unethical about a President or political figure maintaining friendship with a business person. It is public record that Donald Trump and his children, Joe Biden and his son, US Senators and Representatives have millionaire and billionaire friends some of whom contribute large sums of money to their applicable campaign funds.”
Neyor maintained that the presence of a businessman at an event of a public figure with whom he or she has close friendship does not automatically translate to any acts of corruption.
He observed that relationships play a vital role in many investment decisions, adding that “Heaven knows how much we need that.”
“Not understanding the facts and publishing erroneous information either out of irrational self-promotion or to do the dirty work of others interested in oil blocks and who consider Oranto a threat is inimical to the attraction of investors with deep pockets into the country.”
He emphasized that it is also “pure wickedness to your own country that needs critical investments to stimulate the economy and create employment opportunities, especially for the youth when false or manipulated stories are published about reputable investors.”
“It drives them away. To insinuate that everyone in the public or private sector helping to bring needed investors into the country is corrupt is disingenuous. I’ve evidence in my possession that all the attacks against Prince Eze are deliberate and coordinated and unfortunately some young anti-corruption zealots are being unknowingly manipulated in the process. My own reputation as an anti-graft technocrat is beyond reproach and I intend to keep it that way.”
