PARIS, France – The Government of Liberia has signed a Production Sharing Contract (PSC) with TotalEnergies, marking a major step forward for the nation’s oil and gas sector. The agreement, finalized on, September 15, at TotalEnergies’ global headquarters in Paris, carries a signature bonus of US$16 million.
By Gerald C. Koinyeneh, [email protected]
The deal grants TotalEnergies exploration rights over four offshore blocks—LB-6, LB-11, LB-17, and LB-29—each with an estimated investment value of US$200 million. TotalEnergies has already spent US$3.5 million acquiring seismic data, demonstrating its confidence in Liberia’s hydrocarbon potential.
“In 2024, I invited world-class energy companies to Liberia and pledged that under my leadership, the country would provide an environment where investment flourishes—anchored in ethics, the rule of law, international best practices, and strict enforcement of contracts to protect all stakeholders,” President Boakai said.
He added, “The execution of these agreements with TotalEnergies demonstrates that this pledge is bearing fruit.”
As one of the world’s largest integrated energy companies, TotalEnergies operates in more than 120 countries with nearly 100,000 employees. The French energy giant produces approximately 2.4 million barrels of oil equivalent per day—almost half from natural gas—while expanding into renewables and electricity, where it already commands over 30 gigawatts of capacity. Despite a softer market in 2024, the company posted a solid US$18 billion in profit and continues to maintain strong cash flows.
The agreement emphasizes capacity-building for Liberians, with dedicated funding for training and development initiatives. TotalEnergies’ expertise across the West African margin positions it as a capable partner to unlock Liberia’s offshore potential while balancing traditional oil and gas investments with low-carbon energy ventures.
Representing the Government of Liberia at the signing were Marilyn Logan, Director General of the Liberia Petroleum Regulatory Authority (LPRA), Cllr. N. Oswald Tweh, Minister of Justice; Augustine Kpehe Ngafuan, Minister of Finance; and NOCAL’s President and CEO, Fabian Michael Lai.
At the signing in Paris, Marilyn T. Logan, LPRA Director General, said: “The signing of these PSCs with TotalEnergies ends a decade-long pause on Liberia’s offshore petroleum program, marks a positive turning point in the country’s energy future, and stands as a vote of confidence in the reforms we have undertaken to attract responsible operators.”
She added that the partnership offers not only potential for resource development but also concrete opportunities for local capacity building, knowledge transfer, and sustainable growth for Liberia.
“TotalEnergies is enthusiastic to be part of the resumption of exploration activities in offshore Liberia,” said Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies. “Entering these blocks aligns with our strategy of diversifying our exploration portfolio in high-potential new oil-prone basins. These areas hold significant potential for large-scale discoveries that lead to cost-effective, low-emission developments, leveraging the Company’s proven expertise in deepwater operations.”
Officials say the contracts incorporate environmental and social safeguards, transparent revenue management provisions, and robust local content requirements, ensuring Liberians benefit directly from sector growth. TotalEnergies’ participation reduces investment risk, raises the profile of Liberia’s basin, and lays a foundation for further international interest.
JNB welcomes Deal
The Executive Mansion noted that President Boakai expressed full confidence in the interagency negotiation team led by the LPRA and confirmed his administration’s readiness to sign the agreements and transmit them to the National Legislature for public scrutiny and ratification.
President Boakai commended the LPRA for its leadership and acknowledged contributions from the Ministry of Finance and Development Planning, the Ministry of Justice, the Ministry of Mines and Energy, NOCAL, and his Special Presidential Committee on Oil & Gas. He stressed that their collective efforts ensured a transparent, rules-based process that successfully attracted a world-class operator with deepwater expertise, strong financial capacity, and a proven record of responsible operations.
Looking ahead, President Boakai emphasized his administration’s commitment to ensuring exploration under these contracts proceeds according to the highest standards of safety, environmental stewardship, local content development, and transparent revenue management.
“Our natural resources must deliver durable value for the Liberian people,” the President said. “These agreements, when properly managed, will not only strengthen Liberia’s economy but also create jobs, build skills, and open opportunities that will benefit generations to come.”
Officials say the signing of the PSCs represents one of the most significant foreign investments in Liberia’s oil and gas sector in more than a decade. TotalEnergies’ entry signals renewed international confidence in the country’s hydrocarbon potential, bringing unmatched technical expertise, financial capacity, and industry-leading standards in safety, environment, and social responsibility.
About LPRA
The Liberia Petroleum Regulatory Authority is the independent regulator of Liberia’s upstream petroleum sector. It oversees licensing, compliance, and governance to ensure safe, transparent, and environmentally responsible operations that deliver sustainable value for Liberians and international partners.
This is not TotalEnergies’ first operation in Liberia. In 2020, the company sold its marketing and services businesses in Liberia and Sierra Leone to Conex Oil & Gas Holdings Ltd., a regional player in petroleum product import, distribution, and supply chain management in West Africa. The network included 63 service stations, general trade fuel sales, and petroleum products import and storage operations.
Jean-Pierre Sbraire, Total’s Chief Financial Officer, said at the time that the sales contributed to the company’s ongoing divestment program and demonstrated its ability to continually high-grade its portfolio.
History of Oil Exploration in Liberia
Early Exploration (1960s–1980s)
Liberia’s offshore oil potential has been known since the 1960s, though the country lacked the infrastructure and technical capacity to develop it. The Liberian government, seeking to diversify its economy beyond rubber and iron ore, granted exploration licenses to foreign oil companies. Early seismic surveys and exploratory drilling revealed some hydrocarbon potential, but political instability and civil unrest slowed meaningful development.
During the 1980s, companies including Chevron, Anadarko, and Tenneco explored offshore blocks. These efforts mainly involved seismic studies and shallow drilling. Civil conflict, particularly the First and Second Liberian Civil Wars (1989–2003), halted exploration and investment, leaving Liberia’s oil sector largely dormant.
Post-War Revitalization (2003–2010)
After the end of the civil wars, the Liberian government prioritized attracting foreign investment in oil and gas. Liberia joined the Extractive Industries Transparency Initiative (EITI) and strengthened legal frameworks for petroleum exploration. During this period, Total (then Total S.A.) and other companies conducted geological surveys and began discussions for future offshore development.
Offshore Licensing Rounds (2010–2020)
Liberia launched its first competitive offshore licensing rounds in the 2010s, offering deepwater blocks in the Atlantic margin. Companies such as Total, Anadarko (later acquired by Occidental), and Woodside acquired exploration rights. Early exploration focused on deepwater seismic studies to identify high-potential oil and gas basins.
Limited Commercial Production (2020s)
While Liberia has yet to establish large-scale commercial oil production, deals like the recent Production Sharing Contract with TotalEnergies signal renewed international interest. Liberia has also focused on building local capacity, environmental safeguards, and regulatory frameworks to ensure exploration benefits the country’s economy.
What’s next?
The agreement will now be forwarded to the Liberian Legislature for ratification and then to the President for signature to take legal effect. Although lawmakers are currently on break, the Unity Party Alliance holds a majority in both the House of Representatives and Senate, making its approval highly likely when the Legislature reconvenes.
