TotalEnergies signs production sharing contracts for Liberian oil locks

TotalEnergies has signed four Production Sharing Contracts (PSC) for exploration blocks in Liberia. Awarded to the company following the conclusion of Liberia’s 2024 Direct Negotiation Licensing Round, the PSCs cover Block LB-6, Block LB-11, Block LB-17 and Block LB-29, all of which are situated in the south of the Liberia basin. The PSCs align with the government’s commitment to monetize offshore hydrocarbon resources and is expected to pave the way for future discoveries. The African Energy Chamber representing the voice of the African energy sector – views the signing of the PSCs as a direct result of the proactive approach by the Liberian government to attracting new investment across the country’s offshore hydrocarbon market. Through the 2024 licensing round, the government sought to engage global investors and accelerate exploration. The PSCs not only serve as a key step towards realizing this goal but bring significant expertise to the market through the likes of TotalEnergies. As such, the AEC also commends TotalEnergies for its continued commitment to investing in African exploration and production, and views this milestone as a key step towards unlocking new resources in West Africa.
The signed PSCs cover acreage of approximately 12,700 km². According to TotalEnergies, the blocks are situated in high-potential new oil-prone basins, with the areas holding significant potential for large-scale discoveries that lead to cost-effective, low-emission developments. Part of the upcoming work program, TotalEnergies will acquire one firm 3D seismic survey, which is expected to enhance the geological understanding of the blocks. The Liberia Basin – alongside the corresponding Harper Basin – are already supported by a substantial set of seismic data thanks to a partnership between the government and energy data firm TGS. TGS was tasked with acquiring an extensive suite of multi-client subsurface data, including over 24,000 km² of 2D and more than 26,000 km² of 3D data. This data will aid TotalEnergies and other companies as they advance exploration activities. 
Largely under-explored, Liberia represents a promising market given the country’s long-held oil and gas potential. Located in the syn-rift Lower Cretaceous to deepwater Upper Cretaceous geological layers, the blocks offer a variety of source rock intervals across the stratigraphy. Coupled with the high-quality seismic data available, this provides a comprehensive geological understanding of the acreage, thereby supporting exploration and future discoveries. The PSCs come as Liberia implements a bold strategy to attract upstream investment. Prior to the 2024 licensing round, the country introduced amendments to the Exploration & Production Law in 2019, aimed at establishing a transparent and competitive process. Terms included a 100% cost-recovery on pre-PSC seismic data, further adding to the attractiveness of the licensing round.
The 2024 licensing round sought to unlock this potential by attracting new players to invest in exploration blocks. The round featured 29 blocks across the Liberia and Harper Basins, offering opportunities for both international oil companies with the technical and financial capacity to develop offshore fields as well as smaller players and independents seeking forays into marginal fields. With both shallow water and deepwater acreage on offer, the round reflects the strong drive by the government to engage a diverse slate of investors and drive oil and gas projects forward. The signed PSCs signal the confidence that international companies have in Liberia’s frontier oil and gas opportunities.
“The signing of these PSCs marks more than just a corporate milestone – it represents Liberia’s resurgence as a competitive frontier for oil and gas investment. TotalEnergies’ expertise, combined with the government’s proactive reforms, sets the stage for new discoveries, job creation and sustainable development. This moment underscores the importance of African nations driving exploration and unlocking their own resources, ensuring that energy security, prosperity and opportunity are realized by Liberians and by the wider West African region,” states NJ Ayuk, Executive Chairman, AEC.