Liberian oil firm signs deal with ExxonMobil and COPL

jack  Martin LopatkaThe contract will be implemented in Block 13, situated in the southeastern part of Liberia. (Image source: Martin Lopatka/Flickr)The National Oil Company of Liberia (NOCAL) has signed a sharing contract with ExxonMobil and Canadian Overseas Petroleum (COPL)

The contract will be implemented in Block 13, situated in the southeastern part of Liberia, which NOCAL has claimed will lead to a successful discovery and production of oil.

About US$45mn of the contract, which is currently before President Ellen Johnson-Sirleaf for signature and subsequent ratification by the National Legislature, will be used for the improvement of roads in the country.

NOCAL CEO and president Randolph McClain said, “Beginning with the various financial provisions of the contract, U$50mn will be received immediately upon rectification and printing into handbills.”

McClain added, “The amount will include US$21.25mn for one of the largest ever upfront payouts to a non-producing country in the world.

“Up until now, the largest signature bonus Liberia has received for a single offshore oil block is US$3.33mn.”

McClain said the negotiation team of Liberia has also secured a five per cent Citizen Participation Share in LB-13, adding, “If exploration and development in LB-13 are successful, revenue would be available to share with citizens.”

This, he added, would be at no cost to the citizens, NOCAL or the Liberian government. After ExxonMobil and COPL have received their exploration, development and production costs, the share could generate dividends to the citizens from the oil production.

“This contract includes the opportunity for Liberia to participate directly in the country’s oil industry. NOCAL has the right to receive, without cost to it, a 10 per cent share in Block 13 at the start of commercial production,” he noted.

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