TotalEnergies Lands Four Offshore Blocks in Liberia

TotalEnergies has signed four Production Sharing Contracts (PSCs) for offshore exploration blocks in Liberia, marking a resumption of exploration activities in the West African nation. The agreements, for blocks LB-6, LB-11, LB-17, and LB-29, were awarded to the company following Liberia's 2024 Direct Negotiation Licensing Round. The blocks are located in the southern part of the Liberia Basin, covering a combined area of approximately 12,700 square kilometers.

This move signals renewed interest in Liberia's long-dormant oil and gas sector. The country, which has been largely underexplored for over a decade, is seeking to attract foreign investment to develop its hydrocarbon potential. The government, through the Liberia Petroleum Regulatory Agency (LPRA), launched its licensing round to restart exploration and production, aiming to leverage its resources for economic development. The signing of the PSCs with a major international operator like TotalEnergies is viewed as a significant step in this effort.

As part of the work program, TotalEnergies will conduct a firm 3D seismic survey to better understand the sub-surface geology and identify potential oil and gas accumulations. This type of survey is a critical first step in determining the viability of a basin before committing to costly drilling operations.

Kevin McLachlan, senior vice president of exploration at TotalEnergies, said the company is "enthusiastic to be part of the resumption of exploration activities in offshore Liberia." He noted that the acquisition of these blocks aligns with the company's strategy of diversifying its portfolio in what it considers "high-potential new oil-prone basins." The company's press release indicated that the areas "hold significant potential for prospects that have the potential for large-scale discoveries."

The development is part of a broader trend of renewed exploration in frontier basins, particularly in the West African Transform Margin, where new discoveries in nearby countries like Côte d'Ivoire and Namibia have spurred increased industry interest. For Liberia, a successful exploration program could provide a new source of revenue and contribute to its economic and social development goals. However, the country will need to navigate the complexities of resource management to ensure that any future production benefits its population.

By Michael Kern for Oilprice.com

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