Monrovia – In the aftermath of Liberia’s brutal civil war, Nigerian businessman Prince Arthur Eze made millions. According to the London-based watchdog group, Global Witness, Eze bribed his way through the legislative branch of government, paying only US$10,000 registration fee for each block and a mere US$200,000 (two hundred thousand dollars) in other fees for oil blocks in offshore 11, 12, and 14, taking advantage of governance lapses and vulnerabilities in a nation transitioning from war to peace.
By Rodney D. Sieh, [email protected]
The LB 11, LB12 and LB14 offshore blocks are located on the shelf and continental slope of Liberia between 0 and 3,000m of water depth covering more than 9,560km2 of area. After the sale, Chevron operated the three blocks and had 45% interest in them, while Oranto held 30% and the Italian firm, Eni had 25% interest.
In 2010, years after securing those blocks from Liberia, Eze flipped them to Chevron Corporation, a US multinational energy corporation engaged in oil, gas, geothermal energy industries, exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. The sale of that deal was US$250 million. Eze reportedly pocketed $US200 million from the sale.
Now, fourteen years later, FrontPageAfrica is learning that two persons acting as aides to the Liberian President, Jacob Kabakollie and the former head of the National Oil Company of Liberia, Dr. Christopher Neyor have emerged as the brains behind the resurfacing of Eze in Liberia. The pair has in recent weeks held several meetings with Eze in Lagos and Abuja – and even managed to host him in Liberia recently where he met President Joseph Boakai, Vice President Jeremiah Koung and high-ranking officials of the Unity Party-led government. However multiple sources close to the Presidency, speaking on condition of anonymity, said President Boakai is not too keen on doing business with Eze, owing to his previous unscrupulous business wranglings in Monrovia, in particular, the millions he walked away with.
Eze’s interests this time around are offshore oil blocks 15, 16, 22 and 24. Ironically the same blocks the government of Liberia announced in April that Exxon had applied for prequalification. Once prequalified, Exxon is expected to be invited to negotiate Petroleum Sharing Arrangement in the Liberia basin, the Liberia Petroleum Regulatory Authority announced in April.
In 2007, the General Auditing Commission in Liberia reported that ruthless Nigerian oil magnate, Prince Arthur Eze and his Oranto Petroleum company authorized what was perceived as bribery payment to the Liberian legislature in order to secure oil blocks No. 11, 12, and 14. In fact, FrontPageAfrica reported at the time that Mr. Eze’s first cheque for the oil block actually bounced. Years later, in 2010, Eze would flip the block he purchased for a reported US$200,000 to Chevron for a whopping US$250 million. Now fourteen years later, a FrontPageAfrica investigation has uncovered that Mr. Eze is back in Liberia, courting officials in President Joseph Boakai’s government in a bid to secure oil blocks – 15, 16, 22, 24 – which the Liberia Petroleum Regulatory Authority announced in 2023, that the US giant, Exxon was already prequalified for.
FrontPageAfrica has also learned that officials of both the National Oil Company of Liberia and the LPRA were absent from Mr. Eze’s recent meeting with the President and his top officials, raising eyebrows over the motives of those who organized the meeting.
Eze’s latest attempt to rewind his dealings in Liberia comes just months after the government of Senegal put the brakes on his dealings in that country. In May, Eze managed a brief meeting with President Bassirou Diomaye Faye, but despite two trips to Dakar since then, the Nigerian has failed to obtain another appointment with the new president, or his prime minister Ousmane Sonko. Eze, whose company is present in over half a dozen African countries, including Equatorial Guinea, Gambia, Uganda, South Sudan and São Tomé and Príncipe, is said to be paying a high price for the departure of former President Macky Sall, with whom he had a warm relationship.
FrontPageAfrica has gathered that many are puzzled about the boldness of Eze to venture back in Liberia, where he reportedly owes nearly US$20 million in capital gains tax.
FrontPageAfrica has also learned that Senegal is not the only country where Oranto is lagging behind on its contractual obligations. In Uganda, Oranto came very close to losing its Ngassa license, having after it failed to conduct sufficient prospecting. It took a last-minute push on the block, which it obtained in 2016, for the company to hold on to its permit.
On April 17, 2007, the London-based watchdog group Global Witness noted Leigh-Parker co-signed a disbursement voucher authorizing the payment of US$1,500 to the Clerk of the House of Representatives for the payment of “lobbying fees for the ratification of contracts”. On the same day she also approved the bank payment voucher for this money. James R Kaba – House of Representatives chief clerk – wrote a receipt documenting that he was paid this money. According to GW, both Oranto and NOCAL made payments in excess of $120,000 to members of the Liberian legislature in order to facilitate approval of oil contracts. Chevron holds a 70% stake in the nascent exploration venture, Oranto 20% and NOCAL 10%.
In September 2010, according to GW, the Liberian Legislature ratified three “addenda” to Oranto’s offshore blocks 11, 12 and 14, approving the 70% purchase of LB 11, LB12 and LB14 offshore blocks.
At the time of the sale to Chevron, former President Ellen Johnson-Sirleaf issued a verbal mandate to the management of NOCAL to create a comprehensive local content policy that covers local participation from services and supplies to the awarding of drilling contracts to companies that have Liberian presence.
Industry observers contend that what makes Eze’s latest attempt to venture in Liberia even more troubling, is the fact that Eze has a history of not carrying out any corporate and social responsibility projects in countries where he has secured oil blocks. Recently, the government of Equatorial Guinea, raised concerns when it became clear that Eze would not contribute to the development costs of the Venus oil field, in which he holds a 20% stake.
Since the departure of Macky Sall in Senegal, Eze and Oranto have struggled in Senegal as the new President Faye appears to have no intention of dealing with Eze.
In fact, the Senegalese government in a letter signed by the energy, oil and mines minister Birame Souleye Diop, was decidedly forthright in its decision shunning moves from Eze and Oranto. The letter sent to Oranto on August 8 this year and published by Africa Intelligence, was intended to signal a new era in Dakar following the swearing in of a new president, Faye, in April.
Interestingly, AI reported that when the Senegalese authorities extended its exploration permits for Cayar Offshore Shallow and Saint Louis Offshore Shallow in June 2023, Oranto and its owner, Eze promised to provide the state with a bank guarantee of $US25M. The firm was also supposed to submit by last October its 2024 works schedule and prospecting budget for these two sites.
AI reported that neither of these obligations has so far been met. However, the publication noted that Senegalese Mines & Energy minister Diop, issued a warning to Oranto that unless it takes appropriate action within three months of receipt of the letter, its two licenses will be withdrawn. Although it has held the Cayar Offshore Shallow and Saint Louis Offshore Shallow permits since 2008 and 2015 respectively, the firm has never allocated sufficient resources for their exploration. This is in part due to its inability to find partners who are willing and able to co-invest in the venture.
This brings the saga to Liberia where one diplomatic observer pointed out Monday, there appears to be ulterior motives behind those trying to resurrect Eze and Oranto in Liberia, especially after what happened during his last venture in the aftermath of the civil war. With President Boakai reportedly not too keen on an Eze resurrection, it remains to be seen how far the Nigerian’s latest venture will go.
