Liberia: Expert Warns of ‘Negative Consequences’ As Pres. Boakai Awards 100 Percent Ownership of Four Oil Blocks to Nocal Without Legislative, Stakeholder Input

Monrovia — President Joseph N. Boakai’s recent decision to award 100 percent ownership of four offshore oil blocks to the National Oil Company of Liberia (NOCAL) without first seeking input from the Legislature or key stakeholders is drawing sharp criticism from industry experts and economists, who warn that the move could undermine transparency and investor confidence in Liberia’s fledgling petroleum sector.

While justifying his decision, President Boakai argued that granting the oil blocks directly to NOCAL would streamline the process for potential investors.

“Companies we have talked to want to come, but are hesitating because of the legislative process they must go through independently,” Boakai stated. “But once NOCAL gets the block, which the Legislature will rectify, those companies will only need to transact with NOCAL, saving them the long and complicated legislative process.”

NOCAL has welcomed the president’s decision. In a statement, the oil company said the allocation of blocks LB-10, LB-11, LB-29, and LB-31 represents a transformative step in Liberia’s energy sector development.

NOCAL adds that the full ownership transfer ensures maximum financial returns for Liberia, with all future revenues from these blocks directly benefiting the Liberian people through national development projects, infrastructure improvements, and social programs.

It claims that by maintaining complete control over these resources, Liberia safeguards its long-term energy security and reduces dependence on foreign energy imports.

“The allocation creates substantial economic opportunities, including the potential for thousands of direct and indirect jobs in exploration, production, and related sectors. It also positions NOCAL as a major player in Africa’s energy landscape, attracting technical expertise and international partnerships that will build local capacity in the oil and gas industry.”

President Boakai also directed the Liberia Petroleum Regulatory Authority (LPRA) to immediately commence negotiation of the Petroleum Sharing Contracts (PSCs) under strict adherence to the model petroleum sharing agreement.

NOCAL emphasizes that the mandated ten-working-day completion timeline demonstrates the administration’s commitment to efficient resource development while maintaining rigorous standards of transparency and accountability.

“This decision also reinforces Liberia’s sovereignty over its natural resources while creating an attractive investment framework. The NOCAL allocation complements the LPRA’s regulatory oversight, establishing a balanced approach to sector growth that prioritizes both national interests and international best practices.”

Jaleiba says there are currently ongoing negotiations with Total energies and Exxon, and that under the new law, NOCAL has to submit a plan to LPRA before going for legislation. Jaleiba’s comments contradict NOCAL’s release which said it has already been approved.

However, a Liberian oil sector expert, speaking on condition of anonymity, described the president’s approach and NOCAL’s public announcement of the award as “premature and disruptive.”

“NOCAL’s press release is intentionally premature and disruptive,” the expert said. “Both the president’s decision and NOCAL’s premature statement have far-reaching negative consequences for the sector. The President should consult the Legislature as required and not come across as dismissive.”

The expert, who preferred not to be named, pointed out that President Boakai should have consulted the Legislature before awarding oil blocks to NOCAL, adding that the move made by the Liberian leader is “unilateral and unnecessary.”

The expert also called on NOCAL to publicly identify the companies it intends to partner with and challenged the Liberia Petroleum Regulatory Authority (LPRA) to demonstrate that it has the technical capacity to support oil exploration and production within the next four years.

“NOCAL should submit a list of companies to LPRA for pre-qualification. This is because NOCAL does not have the financial and technical capacity to drill or operate an oil block and will flip the block to another company,” the expert stated.

The expert maintained that pre-qualification by the LPRA could be a safeguard to ensure the blocks get to companies with the financial and technical capabilities to drill.

According to the expert, Liberia’s current priority is to find companies that have the capacity to drill, not “middleman” companies that would hold the blocks for years while looking for deals to flip.

The expert added: “The President should consult the Legislature as required and not come across as dismissive. NOCAL should let us know the companies she intends to work with, and LPRA must prove that they have the technical capacity to help us drill in the next four years.”

An economist, also speaking anonymously, likened the move to past controversies in the Boakai administration, specifically referencing the so-called “Yellow Machine” saga.

“This decision is counterproductive. It has negative consequences,” the economist said. “By now, the president and his inner cabinet should have learned their lesson. This is the same thing they did with the Yellow Machine saga, where a few officials used their influence to enter into agreements with foreign companies for the procurement of 285 earthmoving equipment at exorbitant fees. That was reckless and an act of corruption. Had it not been for the media and the House under the gavel of former Speaker Fonati Koffa, millions of dollars would have been lost.”

He added that decisions of this magnitude must include legislative input and oversight to avoid governance failures and promote accountability.

The Executive Mansion is yet to respond. The Senate Hydrocarbon Committee, headed by Senator Edwin Melvin Snowe, is expected to hold a hearing for the confirmation of the newly appointed Board Chair of NOCAL Counselor Gloria Musu Scott.

Issues surrounding the unilateral decision made by President Boakai to award four oil blocks to NOCAL without the input of key stakeholders may likely surface during the hearing.

As concerns grow over transparency and the rule of law in Liberia’s oil sector, it remains to be seen whether President Boakai will revisit his decision or engage the Legislature and stakeholders to ensure a more inclusive and transparent process moving forward.

By FrontPageAfrica.