President Joseph Nyuma Boakai has submitted to the Liberian Legislature a set of Production Sharing Contracts (PSCs) between the Government of Liberia and two international oil companies — Total Energies EP Liberia LLC and Toronto Petroleum Liberia Limited — for ratification. The agreements mark a major milestone in Liberia’s renewed effort to unlock its offshore petroleum potential after more than a decade without new upstream petroleum deals.
According to the communication from President Boakai, the PSCs cover eight offshore blocks within Liberia’s coastal basin. Total Energies is expected to explore and develop Blocks LB-06, LB-11, LB-17, and LB-29, while Toronto Petroleum will operate Blocks LB-15, LB-16, LB-22, and LB-24.
President Boakai said the agreements align with his administration’s ARREST Agenda for Inclusive Development, which emphasizes economic revitalization, job creation, and improved social services. He described the contracts as a strategic step toward national economic transformation and a clear demonstration of renewed international confidence in Liberia’s hydrocarbon sector.
The President noted that the contracts incorporate robust provisions for environmental protection, social safeguards, transparent revenue management, and local content development, ensuring that Liberians benefit directly from the growth of the oil and gas industry.
Under the agreements, both Total Energies and Toronto Petroleum have committed to a range of direct economic and social contributions. The companies are required to prioritize the employment of qualified Liberians in all petroleum operations, reserving all unskilled labor positions within Liberia or on vessels stationed in Liberian waters exclusively for Liberian citizens. They will also provide training and capacity-building support, allocating two hundred thousand United States dollars annually during the exploration phase and one million dollars annually once production begins, to enhance local technical expertise.
Additionally, each company will make social and welfare contributions of one hundred seventy-five thousand dollars annually during exploration and five hundred thousand dollars annually following production approval to support community welfare programs. Both firms will contribute five hundred thousand dollars annually to the national Energy Development Fund and pay an annual administrative fee of five hundred thousand dollars to the Liberia Petroleum Regulatory Authority (LPRA).
As part of the financial commitments, Total Energies EP Liberia LLC will pay a total signature bonus of three million dollars, with four hundred thousand going to LPRA and two million six hundred thousand to the Government’s Consolidated Fund. The company will also make milestone payments of one million two hundred fifty thousand dollars upon acquiring new seismic data and an additional one million two hundred fifty thousand dollars upon approval of the first exploration well. Similarly, Toronto Petroleum Liberia Limited will pay a signature bonus of one million two hundred fifty thousand dollars per block, with four hundred thousand allocated to LPRA and eight hundred fifty thousand to the Government’s Consolidated Fund, along with corresponding milestone payments for seismic and exploration activities.
President Boakai urged the Legislature to act expeditiously in ratifying these production sharing contracts, emphasizing their potential to create jobs, stimulate investment, and generate revenue for the country.
Following the submission, the communication was read before the Liberian Senate Plenary, where lawmakers acknowledged the importance of the agreements. During deliberations, Grand Kru County Senator Albert Tugbe Chie and Senator Numene Bartekwa emphasized that the agreements have major financial implications and should therefore be reviewed by multiple Senate committees.
After extensive discussions, the Senate voted to refer the documents to the Committees on Hydrocarbon, as the lead committee, along with the Committees on Concession, Judiciary, and Ways, Means, and Finance for further review and subsequent reporting to plenary.
The move represents a significant step toward reviving Liberia’s petroleum sector — a development that could position the country as an emerging player in the West African offshore oil and gas market if exploration proves successful.
