Liberia has a very modest oil industry. The security situation in Liberia and the war in Sierra Leone are barriers to international investment. Limited exploration has occurred with seven wells having been drilled between 1970 and 1985.
In terms of downstream activity, all products are imported from neighbouring companies since the refinery at Monrovia was mothballed.
The oil industry is regulated by the Ministry of Land, Mines and Energy.
Liberia does not have a well-developed upstream oil industry. No viable oil and gas discoveries have been made and there is therefore no production or field development.
Hydrocarbon exploration started in the late 1960s with Frontier, Chevron and Union Carbide being active. Before exploration was interrupted in 1972, four wells were drilled and abandoned as dry. No oil and gas discoveries have been made and there is therefore no production or field development in Liberia.
A promotion of the offshore acreage attracted Amoco to the country. Amoco conducted seismic surveys and drilled three more wells, all of which were reported as dry.
Fusion Oil and Gas, an Australian independent, has completed an initial review of Block A, an offshore oil block in Liberia. Fusion, and its partner, Daytona Energy Corporation. The company withdrew from the country in 1989, having stopped exploration activity in 1986.
These offshore wells did indicate that there were viable reservoir facies, seals, and oil and gas prone source rocks. The Liberian offshore can be considered underexplored with limited data from seismic, gravity and magnetic surveys and seven wells over an area of more than 50,000 square kilometres.
In 1998, Société Petroleum Oceanique and Golden Gate Resources Ltd signed a Technical Cooperation Agreement (TCA) for offshore Block C. The initial technical study has been completed and a PSC is now being negotiated.
Xpronet also held a TCA for offshore Blocks E, F, G and H but this has now lapsed and these blocks are believed to be on offer.
In mid 1999, Australian companies, Daytona Energy Corporation and Fusion Oil and Gas signed a joint venture agreement for the exploration of offshore Block A. Fusion, having taken over as operator from Daytona, has completed an initial review of Block A and is seeking to convert the Technical Cooperation Agreement (TCA) into a Production Sharing Contract (PSC). It is also seeking to extend its lease area.
All petroleum products are imported from neighbouring countries since its refinery at Monrovia was mothballed in 1984.
The Industrial Development Corporation of South Africa is a self-financing, national development finance institution focusing on contributing to economic growth, industrial development and economic empowerment through its financing activities.
In April 2003 the Nigeria-São Tomé & Príncipe Joint Development Authority (JDA) invited tenders for the award of acreage in the deep offshore ‘Joint Development Zone’. CWC Associates are delighted to announce the following JDA roadshow events: London (19-20.Jun.2003) and Houston (23-24.Jun.2003). Headed by the JDA, these events will provide vital information and networking opportunities for companies interested in posting competitive tenders for blocks in the Joint Development Zone.