TotalEnergies has signed four production sharing contracts (PSC) for four exploration blocks covering an area of approximately 12,700 square kilometres in the south of the Liberia Basin.
Energy in Africa confirmed on Wednesday that the secured blocks include LB-6, LB-11, LB-17 and LB-29, all awarded following the 2024 Direct Negotiation Licensing Round organised by the Liberia Petroleum Regulatory Agency.
“TotalEnergies is enthusiastic to be part of the resumption of exploration activities in offshore Liberia. Entering these blocks aligns with our strategy of diversifying our exploration portfolio in high-potential new oil-prone basins,” said Kevin McLachlan, Senior Vice-President Exploration at TotalEnergies.
Liberia, which currently ranks amongst Africa’s biggest solar importers, has significant deepwater hydrocarbon potential in its offshore basins, though the country has not yet developed commercial production.
Exploration activities in Liberian territorial waters started in the late 1960s, but those activities ceased due to a variety of factors.
TotalEnergies believes the neighbouring waters of Liberia contain potential large-scale discoveries and plans to acquire one 3D seismic survey.
“These areas hold significant potential for prospects that have the potential for large-scale discoveries that lead to cost-effective, low-emission developments, leveraging the company’s proven expertise in deepwater operations,” McLachlan added.
Oil challenges in Liberia
Liberia has been working to attract oil and gas exploration companies to its offshore blocks, but the process from exploration to production is complex.
Some of the country’s offshore blocks ranging from the continental shelf to water depths of 2,500-4,500 meters have been licensed to multinational oil companies in the past.
But exploration activities in the country’s terrains require multimillion-dollar investments, further dwindling expectations.
Before now, international oil companies like Anadarko Petroleum, African Petroleum, Chevron, and ExxonMobil which had signed PSCs with the Liberian government shut down operations.
TotalEnergies, whose biggest upstream budget is in Africa, is presently the only major operator with an ongoing offshore exploratory interest in the country.
The French company recently secured a fresh exploration permit offshore the Republic of Congo, covering the Nzombo block which it plans to drill at least a well before the end of 2025.
The block stretches about 1000 square kilometres and is located nearly 100 kilometres off the country’s coastal commercial hub of Pointe Noire.
TotalEnergies operates Nzombo with a 50% stake, alongside QatarEnergy (35%) and the state-owned Société Nationale des Pétroles du Congo (SNPC) which retains 15%.
Earlier this month, the oil major had also inked a PSC for two exploration licenses in Nigeria, the first of its kind since the passage of the country’s reformative petroleum industry act (PIA) in 2021.
