History of Petroleum Activities in Liberia

Oil and gas exploration in Liberia dates to the 1940s when the government awarded its first exploration contract, however no activity was performed by the contractor. In 1958, exploration license was awarded to Liberian American Exploration Corporation, however no significant discoveries were made. After about 10 years of inactivity in the sector, subsequent exploration activities were conducted between 1960s and 70s by Union Carbide Petroleum Corporation, Frontier International Petroleum, and Chevron Oil Company, which resulted in a magnetic and seismic data acquisition. The USGS and LGS conducted a joint aeromagnetic survey which, after interpretation, exposed the presence of sedimentary basins on the continental shelf (up to 600 meters depth of Liberia).

A major milestone was achieved in 1968 when the government of Liberia enacted the Liberia’s Petroleum Code to form the basis for the division of its continental shelf into four main blocks (A, B, C, and D).Blocks A, B, and C were awarded to a few companies, however no major discoveries were made. This result diminished investors’ interest in Liberia’s petroleum sector for more than a decade. By 1971, about four wells had been drilled by Union Carbide, Frontier, and Chevron correspondingly. The government continued its activities by quiring further geophysical data between 1972 and 1981. During the sametime a total of 18,900 line-km of seismic data was acquired by the Ministry of Lands and Ministry of Energy as well as USGS, with support from the World Bank. Additional blocks were created including 5 shelf area and 4 deepwater blocks.

Subsequent exploration activities by AMOCO proved futile and it relinquished all acreage and ceased operations in Liberia in 1989. Subsequent seismic surveys by various companies confirmed the presence of six sedimentary basins ranging in thickness from 4000 feet to approximately 20,000 feet. Discoveries in other West African countries has, has drawn much interest in the region including significant interest in Liberia.

As a result of this interest, exploration activities in Liberia’s offshore territory recommenced in 2000 after a decade of dormancy with the conduct of extensive 2D and 3D seismic surveys (from 2000-2010) and the drilling of five exploratory wells between 2010 and 2012.The announcement in February 2012 of an oil discovery in Liberia intensified further investment interest. Between 2010 and 2016, ten (10) additional exploratory wells were drilled but no commercial discoveries were made.

Currently, Liberia has a total of 52 concessionary offshore acreage blocks, with a maximum area of 2000 sq-km per block. Deep-water blocks exist close to the continental shelf ranging from water depths between 2500 - 3000 meters. The blocks considered “ultra-deep” has water depths of as much as 4500 meters.